Cree Lights up the Bull scan

• Posted by Greg Harmon
• on January 21st, 2016

After 3 days without a single name, a couple of stocks have appeared in the bullish scan. The first one to show up was Cree, $CREE, the LED light bulb maker. This stock had stair stepped lower from a double top at 75 back in October 2013. In February 2014 it fell below its 200 day SMA, a bearish signal, and has not been back above it since. Until today. The intraday move through mid day puts the price back above the 200 day SMA one day after reporting earnings.

It moved from the downtrend to a consolidating period in mid 2015 after a gap down in June. Moving back and forth mainly between 22 and 28 in a range, it seemed like a dead stock for investors and maybe a channel trading stock for short term traders. It pushed above that channel twice, both times in December but failed to continue.

But looking at the chart now, conditions seem good for a break out. The RSI is near the peaks in December, but is still rising and bullish. The MACD looks a lot better though. It has reset much lower and is just giving the buy signal. The key to future upside is a move over the previous highs at 28.50 and into that gap. But a good start would be a close Thursday over the 200 day SMA.

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