In addition to tonight's new play these stocks caught my eye and might offer a trading opportunity.
NANO - This tech stock is breaking out past resistance near $18.00.
STX - This is another tech stock that is showing relative strength and is breaking out past some short-term resistance.
TDC - The oversold bounce has stalled and TDC is beginning to roll over again. Friday's drop could be a new bearish entry point.
NEW BEARISH Plays
Netgear Inc. - NTGR - close: 33.57 change: -0.60
Stop Loss: 34.60
Current Gain/Loss: unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
Shares of NTGR have been struggling with a bearish trend of lower highs and lower lows almost the entire month of December. While technically the 50-dma's upward cross above the 200-dma is bullish the price action is telling a different story. NTGR is on the verge of a new breakdown from the $33.50-38.00 range.
The exponential 200-dma is at $33.24. I am suggesting a trigger to open bearish positions at $33.20 with a stop loss at $34.60. Our target is the $30.25 mark. More aggressive traders could aim lower.
FYI: The Point & Figure chart for NTGR is still bullish but a drop under $33.00 would produce a new sell signal.
Trigger @ 33.20
Suggested Position: short NTGR stock @ 33.20
- or -
buy the Jan $32 PUT (NTGR1221M32) ask $0.95
Entry on December xx at $ xx.xx
Earnings Date 02/09/12 (unconfirmed)
Average Daily Volume = 317 thousand
Listed on December 31, 2011