I've done up the chart in the manner of Vic Sperandeo's "1-2-3" trend change guide. As you can see, CREE has broken out above the trend line. The lowest low preceding the breakout provides a test floor or boundary and the previous minor rally high acts as the ceiling which CREE must break through to define the change in trend.
Right now we have a possible change in trend. If CREE tests that upper boundary and then breaks out above that previous high, we'll have a defined trend change and a new uptrend in place, according to Sperandeo's method.
Also, a recent break above a year-long downtrend line and a successful fill of a prior downward gap at the 37.60 level may be a sign of a positive trend for Dolby (DLB).
I have to say I'm not as familiar with the current fundamental picture on Dolby. Of course, they are a leader in film sound technology and surround sound, etc. for home entertainment.
A bit more research will have to be done here (and I'll also take a look at IMAX and RLD), but I think it's safe to say we all know that...
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| "You don't do heavy metal in Dubly, y'know..." "She means Dolby." - Spinal Tap. |
