BMC Software Inc. (BMC) — This international software developer for management solutions for large enterprises reached a high of more than $40 last June. But the bear market drove BMC to under $21 in October.

Since then, BMC formed a strong zone of support with our internal, the Collins-Bollinger Reversal (CBR), flashing multiple buy signals. Also note the crossing of the 20-day moving average through the 50-day moving average for a trading buy signal in December.

Recent high volume on the buy side has driven the stock to within striking distance of the 200-day moving average and the stochastic to a new buy signal.

The target for a short-term trade is $36 but longer term, this stock could break to new highs within 4-6 months.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.