NEW BEARISH Plays
NCR Corp. - NCR - close: 27.18 change: -0.34
Stop Loss: 28.55
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Entry on December -- at $---.--
Listed on December 15, 2014
Time Frame: 8 to 12 weeks
Average Daily Volume = 2.25 million
New Positions: Yes, see below
Why We Like It:
NCR is part of the technology sector. Company marketing material describes NCR as "the global leader in consumer transaction technologies, turning everyday interactions with businesses into exceptional experiences. With its software, hardware, and portfolio of services, NCR enables more than 485 million transactions daily across retail, financial, travel, hospitality, telecom and technology, and small business. NCR solutions run the everyday transactions that make your life easier. NCR is headquartered in Duluth, Georgia with approximately 29,000 employees and does business in 180 countries."
It has not been a good year for shares of NCR. The stock is down -19% in 2014. NCR's stock was already in a bearish trend of lower highs and lower lows before the company issued an earnings warning on October 20th. You can see the big gap down and plunge toward $23 on that session. Since the stock has seen a technical rebound that was boosted by the market's widespread surge off the October lows. Unfortunately for NCR the rally reversed at resistance near $30.00 while the broader market broke out to new highs.
Management lowered their Q3 and 2014 guidance on the 20th and essentially warned that Q4 would be disappointing as well.
Chairman and CEO Bill Nuti commented on their results saying, "Our Retail Solutions business was challenged by customers spending more cautiously than anticipated and further delaying solution rollouts. These trends, along with difficult global macroeconomic conditions and foreign currency headwinds, had significant impacts on our performance in the third quarter, and we expect they will continue to impact our Retail Solutions business in the fourth quarter."
Traders have been selling every bounce with new resistance at the descending 10-dma. The point & figure chart is very bearish with a $20.00 target. The stock closed at new six-week lows today. Tonight I'm suggesting a trigger to open bearish positions at $26.95.
Trigger @ $26.95
- Suggested Positions -
Short NCR stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the Jan $27 PUT (NCR150117P27) current ask $1.20
Option Format: symbol-year-month-day-call-strike