Salomon Smith Barney's analyst H. Clinton Vaughan, picked up the theme again when he downgraded network data storage device maker, Network Appliances [NTAP]. Vaughan revised the storage market's growth from 25% to between 15% and 20% for the year, and downgraded Network Appliance to "hold" from "accumulate." As a result NTAP dropped $3.13, or 11.11% in Thursday's session.
Network Appliance's share price may drop even more. The Technical Stock Watch List charts potential trends for tech stocks in six technology groups. A total of 33 stocks are assessed on a technical basis and are updated daily. It suggests the stock is in a downtrend, and according to the stock's current chart, support may be found at the lower envelope band at approximately $21. Network Appliance's share price falls back each time it approaches the 10-day moving average, underlining the stock's weakness. It appears first support could be found at the lower envelope band. That would take the stock back down to levels first seen November 3, 1999, just before the stock's meteoric rise took hold.
It appears that Network Appliance's share-price may be close to completing the fourth and final stage, the declining stage, of a technical cycle. Once the stock finds bottom, possibly in the high teens or low $20's, the stock may trade in a sideways accumulation pattern. Trading oversold rallies may present opportunities while the stock sorts itself out.
from stockhouse |
