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Nearest Resistance: $16.50
Nearest Support: $13.50
Catalyst: Earnings Miss
>>4 Tech Stocks Set to Shine
Computer networking firm
Ciena (CIEN - Get Report) is getting hammered today, down around 17% as I write after the firm reported a third quarter loss to Wall Street that underwhelmed investors. While this stock's stellar performance in the first part of the year means that shareholders are still beating the
S&P 500 in 2012, the selloff we're seeing today isn't a good sign.
Ciena had been making higher lows since late May, supported by an uptrend that was buoying shares higher. Today's gap down violates that uptrend and makes even lower prices a distinct possibility in the near-term.
Support is close by at $13.50, which limits risk somewhat. If you wanted to sell CIEN, you might as well keep holding now to see if it can catch a bid at support. If $13.50 fails, I'd recommend unloading shares.