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Near 50 DMA and Important Support After Loss On Heavier Volume
Tuesday, August 24, 2010   CANSLIM.net
 

Rovi Corp (ROVI -$1.72 or -3.96% to $41.58) gapped down today for a loss with nearly 2 times average volume, sinking near its 50-day moving average line. Below that important short-term average support is defined by prior chart resistance in the $40 area. Violations may trigger technical sell signals and prompt investors to limit losses or lock in profits, especially with broader market weakness (the M criteria) recently raising concerns.  Meanwhile, it is reassuring that its earnings per share increases in 3 of the past 4 quarterly comparisons versus the year ago period showed better than +25% growth and it has a decent annual earnings track record in recent years. However, the M criteria of the investment system argues that 3 out of 4 stocks will follow along with the direction of the broader market averages. Members who are following along with recently published market commentaries have seen numerous reasons cited for increased caution.

About : Kenneth J. Gruneisen - Passed the CAN SLIMĀ® Master's Exam
Kenneth J. Gruneisen started out as a licensed stockbroker in August 1987, a couple of months prior to the historic stock market crash that took the Dow Jones Industrial Average down -22.6% in a single day. He has published daily fact-based fundamental and technical analysis on high-ranked stocks online for two decades. Through FACTBASEDINVESTING.COM, Kenneth provides educational articles, news, market commentary, and other information regarding proven investment systems that work in good times and bad.


Comments contained in the body of this report are technical opinions only and are not necessarily those of Gruneisen Growth Corp. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. Our firm, employees, and customers may effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein or options with respect thereto. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities.
You can contact Kenneth J. Gruneisen - Passed the CAN SLIMĀ® Master's Exam at kengruneisen@gmail.com

 
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Kenneth J. Gruneisen founded Gruneisen Growth Corp. (2003), which prior to May 11, 2015, operated CANSLIM.net and CANSLIM.com both under license from Data Analysis Inc. / Investor's Business Daily. Kenneth has passed the CAN SLIM® Master's Exam. Gruneisen Growth Corp. now continues over two decades of fact based market analysis via FactBasedInvesting.com.

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