In this time of great uncertainty for the US stock market, it's a bit difficult to look for issues that one can buy. Fortunately, we found one.
Coherent Inc. (Nasdaq:COHR), a company involved in laser and its applications in business & science, was previously moving in a general sideways movement until a sudden drop happened in November 2007. That lead to a low of around $22.00 in January and it has steadily risen since then.
Currently, COHR has been consolidating in what seems to be a pennant formation. Based on the data as of Feb. 22, 2008, the resistance of the pennant for the next trading day would be at $28.67. The projected upside target is now pegged at $31.00. The cut loss for this would be a break of the support of the pennant at $28.16. The momentum for COHR is still intact as can be seen with its MACD. As for the moving averages, the 100MA is serving as a support at 28.13
So what are we saying here? Despite the prevailing uncertainty and bearishness in the market, there are issues that will be like salmon as they swim against the trend. The question remains if this salmon can survive the resisting force or will it find itself as sashimi?