As the market continues to sell off this morning, traders should take a look at NetApp (NTAP). The stock is nearing a support level and if it’s broken, a strong move lower may occur.
NTAP is a leading provider of enterprise data management and storage solutions. The company transitioned from a data center storage firm to providing software data management solutions for multi-cloud environments. It is poised to benefit from an increased adoption of cloud-integrated all-flash solutions and hybrid multi-cloud offerings.
Take a look at the 1-year chart of NTAP below with added notations:
Chart of NTAP provided by TradingView
NTAP has formed an important level of support at $40 (green) over the past several months. The stock has consistently managed to rally off this level, and now it’s nearing $40 again.
If the stock moves beneath the support level, a trader could enter a short position below $40 with the expectation for a breakdown.
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Christian Tharp, CMT
NTAP shares were trading at $40.62 per share on Thursday morning, down $0.57 (-1.38%). Year-to-date, NTAP has declined -32.70%, versus a 0.95% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp, CMT
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More…