Brocade Communications Systems, Inc. : A technical rebound is coming
By Théo de Beublain
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$10.36 | $0 | $9.8 | -100% |
The company, which engages in the provision of innovative network solutions, enjoys a good Surperformance rating, which underlines its strong fundamentals. The Reuters Consensus is optimistic about the stock and displays an average target price of $11.9, ie a 14% increase. Moreover, the firm’s finances are excellent and investors can appreciate its very nice profitability (operating profit amounts to 25%)
Technically, the stock has followed a bearish trend. Even if all the moving averages are still in a downtrend, a positive reaction in the USD 10.26 area should stop this trend and allow a technical rebound. Indeed, the security has been recently oversold.
Active investors can now take long positions at current prices and aim firstly the $11.08 bull target. In case of a breakout of it, our second target price will be the USD 11.71 mid-term resistance.
However, a stop loss order will be set below the short term support to avoid important losses.