– James F. Taulman, former Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.
MON1/21 7:30 PM – BREAKOUT UPDATE
UPDATE: Ciena Corporation (CIEN – NYSE)
NOTE: Ciena is the latest breakout from my Technical SetUps WatchList which is emailed out each market morning at 8AM in my Stock WatchList Morning Update. Learn more here.
Shares of CIEN continued trading higher this past week, adding another +5%.
| SYMBOL | LAST | ADDED TO WATCH LIST |
BREAKOUT DATE |
BREAKOUT PRICE |
| CIEN | $38.50 | 12/30/18 | 1/07/18 | $35.14 |
Chart courtesy of stockcharts.com
| MAX BUY PRICE | 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE | CURRENT % GAIN/LOSS |
| $36.90 | $33.66 50DMA |
$31.00 | $32.32 | +9.56% |
I have to note two important technical concerns with this holding. One, is that the breakout and the portfolio gains of +9.5% have been with a lack of volume conviction.
Two, shares are now extended, being +33% above the 200 DMA, with no real significant support until the 50 DMA which is more than -10% below Friday’s close.
Any weakness in this selection would be a time to take at least a portion of profits.
PREVIOUS UPDATES: CIEN
SUN 1/13 UPDATE: We had CIEN, from the Technical SetUps WatchList, also break out on Monday.
As noted mid-week – “Volume was not as much as we normally like to see, being only +15%, however, lower volume breakouts can still work out in an up-trending market.
Thus far shares have held up, considering the lack of clear conviction on the breakout day, and have actually traded a bit higher.
Heading into the end of the week, volume cooled and there were not many willing sellers as the stock traded at new all-time highs.
However, shares are starting to get a bit extended, and swing traders could consider taking +4% profits here. There is no real solid support until possibly the 50-day moving average which is below the breakout price. Also, note that our 2nd SUPPORT is below our MAX STOP LOSS GUIDE. When those are inverse, that is not a good sign.
Of course, any solid gains WITH some real volume behind the move would negate the present technical concerns. Overall, market direction is likely to be key in the stocks move from here.
NOTE: Ciena is the latest breakout from my Technical SetUps WatchList which is emailed out each market morning at 8AM in my Stock WatchList Morning Update. Learn more here.