Resources Connection, Inc. is an international professional services firm that provides experienced accounting and finance, risk management and internal audit, information technology (IT), human resources and procurement (supply chain) management professionals to clients on a project basis. It provides human resources management services, such as compensation program design and implementation; IT services, such as transitions of management information systems, and internal audit services, such as documenting internal controls.  This is a high-ranked leader in the Commercial Services - Consulting group, a group that has moved up on IBD's list of 197 Industry Groups list to 50 from a 165 rank 3-months ago. The company is also showing sales revenue growth acceleration in its most recent quarterly financials, and its impressive earnings increases put it in the top 5% of all public companies based on earnings growth.

What to Look For and What to Look Out For:  Today's only news headline of significance was that the company will announce results of operations for the fourth quarter and year ended May 31, 2004, after the close of market on Thursday, July 15, 2004. Based on the favorable action, institutional investors seem to be showing high expectations for the company's future earnings.  Any serious reversal and drop back under $44 would be cause for concern, while a break down under its 50-day moving average line on higher than average volume would be a more serious violation and clearer sell signal.

Technical Analysis: Today RECN cleared a 9-week base on volume 7 times its average daily trading volume.  In the prior months it generally found support in close range of its 50-day moving average line, and there were two very clear high-volume breakouts after lengthy consolidations.   

- Kenneth J. Gruneisen