Below is a brief recap on each of the top-volume, news-driven movers in Thursday's after hours, taking a look at specific stocks' after hours movement and how that trade may offer insight into potential floor supports, ceilings and trading ranges that could develop in Friday's pre-market and early regular session.
Blue Coat Systems (BCSI) soared 20.5% to 20.39 in Thursday's evening trade after posting better-than-expected results and guidance. BCSI firmed from 18.09 to 20.25 through the early after hours before settling between 19.74 and a high of 20.41 through the bulk of its evening action. A pre-market open Friday may have potential in the 20 to 20.50 area. BCSI has seen more aggressive follow-on regular session closing levels following 18 of its last 30 after hours earnings events. We noted earlier today for longs to take note, BCSI has posted earnings-driven gains after 12 evening earnings reports. It has extended that move 10 times, or 83% of the time. The bullish widening pattern on the upside would have us running the long side of the shares Friday. Early buyers may want to target possible entry points between 19.50 and 20.25, a possible floor support that could see turns back toward the 20.40 area or higher.
Marvell Technology (MRVL) advanced 3.9% to 14.30 in Thursday's after hours on the back of better-than-expected Q3 results. MRVL maintained plus-side levels between 13.73 and 14.20 through the first-half of evening trade. Buyers grew more bullish into the second-half, driving MRVL up from 13.90 to a late high of 14.60. A pre-market open Friday may have potential near 14.20 to 14.50. MRVL has reversed direction between the sessions following earnings-driven after hours moves in 18 of the last 29 quarters we've tracked. Looking deeper into the data, the stock has followed earnings news with gains in 18 quarters, expanding that move just seven times, however. The broader reversal trends in place in MRVL shares shouldn't discount a long play on the shares Friday, but we would be cautious and look to exit early if support fades. Longs may want to target possible entry points in the 14 to 14.20 area, a base support that could see bumps back toward the mid-14s.
Salesforce.com (CRM) declined 7.2% at 117 in Thursday's after hours trading after beating Q3 expectations but also noting its Q4 loss, including costs, will be deeper than expected. CRM cratered to an early after hours low of 110.81. Buyers moved firmly into the shares off the bottom, goosing CRM north from 111.24 to a late high of 119.45. The stock steadied between 116.60 and 119.45 deeper into the evening. A pre-market open Friday looks to have potential surrounding the 116 to 118 range. CRM just favors a reversal trend between the bells following its after hours earnings reports, narrowing or reversing 16 times and widening 12 times in next-day trade following its last 28 extended-hours earnings reports. Looking deeper into the performance data, CRM has recorded an earnings-driven after hours decline in 15 of the 28 quarters we have tracked, reversing direction in next-day trade in 10 of those events, or nearly 67% of the time. The strong reversal trend in place off earnings-driven evening declines, combined with some aggressive buying off tonight's low, would have us looking at a prospective long play to start on CRM shares Friday. Shorts shouldn't wander too far. Early longs may want to target possible entry points in the 111 to 114 area, a range that could see lift back into the 116 to 118 area. On the short side, the 119.45 to 118 area stood as a late ceiling that could have legs for downside play toward 114 to 112.