El Paso Corporation (EP)

[frenchee]

A trend line which has functioned as support or resistance for several years is powerful. That's the case for the support trend line on the weekly charts in the iBox which has held support several times since Nov 03. In addition, when price is above the 39-week simple moving average of price, I consider the stock to be in a bullish long-term trend. Think of the 39-week SMA as a trend line which moves thru time. With price currently sitting on or very near both the support trend line and the 39-week SMA, I would expect a bounce here. If not, the next target would be the lower Bollinger Band around 15.50 which is also the area for the key 70-week exponential moving average.