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Advisory Board Co. (ABCO -0.32 or -0.64% to $49.38) closed below its 50-day moving average (DMA) line for a third consecutive day on Friday.  Volume was above average in the prior two sessions but decreased behind Friday's losses.  The latest rally attempt lacked volume conviction behind the gains, and the stock stalled short of prior chart highs and promptly reversed back under its 50 DMA.  These are signs that the stock is facing some resistance, while a more serious technical breakdown under the previous chart lows in the $46-47 range would be cause for much greater concern.  Note that, while the stock still maintains a 90 EPS rank in the newspaper, its earnings have not been up by the +25% minimum guideline.  Thus, we would conclude that fundamentally stronger buy candidates are likely to emerge while ABCO continues to trade in a suspect manner.

Advisory Board Co (ABCO +$1.20 or +1.95% to $53.20) has made solid, above average volume advances the past two sessions closing at an all-time high. This high ranked leader was first featured on 5/6/05 as it had a cup with handle like pattern. Again it was just recently highlighted in the CANSLIM.net Daily After-Market Update on 7/25/05 with notes of "A break above $50 with volume would trigger a technical buy signal."

 
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