First, note the false breakout one week ago above 8.40.  A long tail above price resistance and failure to break out typically results in further weakness and it did in this case as well.  The last week has been torture for HLIT shareholders, but I believe there's hope on the horizon.  Thus far, key gap support has held, one good sign.  Then check out the black arrows on the chart.  They mark price and relative strength highs simultaneously in December.  That's the look of a stock in very good stead on Wall Street.  I like HLIT, but with the understanding that the risk is higher given the industry group's overall relative weakness.

Tomorrow at 2pm EST, I'll be hosting a webinar to discuss (1) a new, exciting feature at StockCharts, and (2) analyzing charts of companies set to report earnings.  As to the latter, I'll discuss the very impressive results to last week's Q4 earnings analysis, as well as provide a large number of companies reporting in the week ahead, with my analysis of whether I'd want to be long or short the stock, based on its technical signals - an "earnings encore", if you will.  I hope you can make it!