Technicals And Seasonality Lining Up For This One

I wrote an article over the weekend at StockCharts.com, discussing the strengthening specialty finance group ($DJUSSP).

In addition to much more recent bullish technical behavior, the group also boasts a seasonal track record from March through May that is as strong as any industry group across all 11 sectors. That makes one of its component stocks very appealing. First, let's check out the technical chart of MSCI, Inc. (MSCI):

Enter MSCI, Inc. (MSCI):

It broke out in late January to finally close above the 515-525 price resistance zone. Over the course of the last year, I count 19 previous attempts to clear this resistance zone without a single success. So the breakout is obviously a bullish development on the chart. But then there's the upcoming bullish seasonality for MSCI as well. Check out MSCI's seasonal strength since 2013. Most of it is in the first half of the calendar year, with significant strength over the next 3 months. Check this out:

While the overall market could be poised for a period of consolidation or selling, I believe we'll see buyers re-emerge on MSCI as we drift back into the 515-525 price support zone created by the late-January breakout.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.