NetApp Reaches New Lows on Heavy Trade

NEW YORK ( TheStreet) -- A downgrade yesterday from from Pac Crest sparked a heavy selling wave in shares of NetApp NTAP. The stock lost just shy of 2% on its heaviest trade since late March.

The drop extends last week's ugly breakdown that took out the lower band of a five-week bull channel. The bottoming action that began in late March continues to deteriorate as this week begins.

It's very likely that the nasty downtrend that has been in place since the beginning of 2015 has further to go. NTAP is in the process of putting in its sixth straight lower monthly high, and , as measured by its MACD , it is far form oversold.

It's likely the stock will soon retest i t s 2014 low near $33.50. This is a major support zone and may provide the footing needed for shares to mount a rebound.


This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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