Points to watch: Brooks Automation rallied
Tuesday and closed just above the important resistance level of 20. The stock tested the
38% retracement level at 20.5 intraday before falling back. This month the stock has
broken out above its long term resistance at 17.25. This level had acted as
resistance since late 1997. Longer term technical indicators are solidly positive.
Weekly MACD gave a buy signal in mid October and continues in an uptrend. Weekly
OBV, RSI, and stochastics also are in uptrends. Daily indicators are mixed,
indicating some short term profit taking is possible. Daily OBV has made a new high, but
daily MACD and stochastics have shown negative divergences with price during this
week's runup. Wait for the stock to move above resistance at 20.5 before buying.
Place a stop between 17.82 (the 38% retracement of the December-January rally) and
Gann 1x2 angle support (which has held on a weekly closing basis since late October) at