Nearest Resistance: $1.80
Nearest Support: $1.55
Catalyst: Earnings Miss
Alcatel-Lucent (ALU) is getting hit hard following its earnings call; as I write, shares of ALU are down more than 7.6% on the day. The firm's 60.5-cent fourth-quarter loss was about twice as deep as analysts had expected, and today's selling likely brings an end to the uptrend that shareholders had been enjoying in the Paris-based communications firm.Today's big red candle on ALU's chart is a big deal. It's sending shares back down to a support level from the end of January. That last test was an indication that demand for shares is wearing at $1.80 -- a breakdown below $1.55 support is a signal that this stock is making a double top pattern. If that happens, I'd recommend being a seller.
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