Earnings Play: NetApp
Jason Lubin November 27, 2020 4:15 PM
Upside breakout from a long-term bearish channel.
On Tuesday, after market, NetApp (NTAP) is expected to report second quarter EPS of $0.73 compared to $1.09 last year on revenue of approximately $1.3 billion vs. $1.4 billion a year earlier. The Co is a leading provider of data management and storage solutions, and its current analyst consensus rating is 7 buys, 18 holds and 3 sells, according to Bloomberg.
Looking at a weekly chart, NetApp's stock price recently broke out to the upside of a long-term downward channel that began to form in September of 2018. The RSI is holding over 60 and shows bullish momentum. Price appears to have used to the 200-week simple moving average (SMA) as resistance.
Source: GAIN Capital, TradingView
Looking at a daily chart, NetApp's stock price has been rallying since late-October, early-November and on November 16th, price broke out to the upside of the long-term bearish channel that price was declining within since September of 2018. The RSI has just retreated from overbought territory and its holding above 60. The SMAs are bullish, as the 20-day SMA is above the 50-day SMA and the 50-day SMA is above the 200-day SMA. Price could possibly pull back to the upper trendline of the long-term bearish channel where it would likely find support before continuing to advance. If price can get above 55.75, then its next target would be 61.00. If price can get above 61.00, then it could continue to rise. On the other hand, if price falls below 49.75, it would be a bearish signal that could send price back to 46.75. If price is not able to find support at 46.75, then price could fall further.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.