Corning, Inc. (GLW) Pullback Sets Opportunity For Future Breakout (Technorati) Technorati | (Del.icio.us) Del.icio.us | (Digg) Digg | (Blinklist) Blinklist | (Comment) Comments (0)

I wrote an article a while back about Corning Glassworks (GLW). At the time the stock had set up nicely to make a good breakout from $19.50 to $25 and change. The stock has since pulled back nicely. I have not yet decided to jump back into this one but I do have it on my watch list again.

As LCD TV's continue to post strong sales in record numbers, Corning is well positioned to take advantage of this market. As one of the leading providers and developers of the glass used for the screens of these LCD TV's, the growth opportunity here is very strong and the stock is setting up again for a nice up tick.

Corning Glassworks - Feb 2006

Here you can see Corning's pullback in recent weeks. I attribute this decline to the natural profit taking that occurs after such run ups. The decline is naturally accompanied by bearish MAC and Full STO indicators. The 200-day moving average shows a nice upward trend with several points of resistant that I have highlighted. I feel the next point of resistant will be around $22.73. Should the volume begin to increase and the economic indicators begin to turn more bullish, I will look to re-purchase more shares.

I do want to be clear that I do not feel that now is the right time to re-enter the stock. I think there is still a little more downside and profit taking in store through next week as the stock finds a bottom and hopefully sets up for it's next big move up. Should the stock not find a bottom around its next resistance level, you can expect to the stock switch from a long term inclining trend to an intermediate decline to a new base. To summarize: wait for the support level to reaffirm itself, wait for the MACD to break up above 0.0, wait for the full STO to turn north of 25 and wait for the volume to increase and accumulate large block trade after block trade. If all these conditions prove true, enjoy your profits that you should see from Corning’s next run up in the very near future!

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