Typical Pin Action. It's not just hardware, it's software that's getting creamed. PANW and RHT already at bottom of range still getting sold. Greedy shorts are pressing these stocks because nothing else is working for them. We all know there is a squeeze coming just a matter of time. Great short and long term buy at $75 as usual.
They were able to drop it below $42 but much unfortunately, the stop loss cascade didn't kick in as they hoped. Apparently, even weak hands won't sell below the IPO price.
There you go. Below the IPO price. And I agree, they want to press their short to get it down to $40 if they can. Then those same firms will issue an upgrade once they have accumulated enough shares and call options, then the stock will soar into the earnings call later this month. Just watch and see it unfold.
These institutions want to take it below the IPO price because they know that there are stop losses that will automatically kick in. You just have to understand how they operate and just buy low and sell high. Don't sell low!
If you follow this stock, you will see that following the technicals on this stock is almost useless. However, the one thing you can take away is that $42.50 has been support for two weeks. Institutions who are controlling this price for their own benefit want to take it below this level to wash out the sellers. This should be close to $50 before the next earnings report. I for one will buy more as it drops. I've seen this movie before. It ends bad for the fearful who sell at the bottom of the range but makes money for those who buy low and sell high.
Perhaps it goes to $45 to shake out weak hands, then $55 into the Twitter IPO.
It may not count in your opinion but it gives a good clue on how it will trade the next day. The pop last night was no accident. It revealed buying interest which is playing out after the gap down gift this morning.
Once a stock sells off, it is hard to reverse the trend. The shorts will get hurt but if you're long you have to be patient. Look at EXPE up 17% today . The fools that sold that stock under $50 are kicking themselves after an earnings beat. Same thing should happen to PANW.