NetApp: Earnings release technical preview, large short-base 11/17 12:48 PM
BULLISH CASE: On better than expected news/outlook the stock could trade to the upper limit of the very short-term bullish price channel at $30.31. On a bullish breakout above the price channel the following resistance levels would become upside objectives: $30.90, $31.75, $32.29, $32.84, $33.35, $33.88, $34.49, $35.23, $35.91.
BEARISH CASE: On worse than expected news/outlook the stock could trade to the lower limit of the price channel at $28.94. On a bearish breakdown below the price channel the following support levels would become downside objectives: $28.41, $27.70, $27.18, $26.69, $26.27, $25.85, $25.39, $24.98, $24.53, $24.07, $23.69.
NOTE: Large short-base at 4 days to cover, with 6.9% of the float short. Traders are positioned for negative news. Reactions on a surprise, especially a positive one given the large short-base, have a high probability of being extreme in duration and price. Very high gap risk. |
