A very important technical tool that savvy investors have learned to incorporate in their technical analysis is the 50-day moving average (DMA) line.  The 50 DMA line plays a pivotal role relative to a stock's price.  If the price of a stock is above its 50 DMA then odds are that its 50 DMA will act as formidable support.  Institutional owners will often add to their existing holdings in a security if they still believe the company has a healthy outlook, but after a stock has violated its 50 DMA line, its outlook gets worse

United Therapeutics Corp (UTHR -$0.77 or -0.71% to $108.68) recently found support near its 50 DMA line. This stock was first featured on Tuesday, August 05, 2008 in the CANSLIM.net Mid Day Breakouts Report (read here).  However, the poor market environment (the M criteria) has hurt its chances of making any headway, as 3 out of 4 growth stocks follow right along with the direction of the major market averages. This high-ranked leader still remains within close striking distance of its all-time highs, which makes it a good candidate for an active watch list.

C A N S L I M | StockTalk | News | Chart | SEC | Zacks Reports |  

View all notes | Alert me of new notes | CANSLIM.net Company Profile