NTGR's chart caught my attention tonight. In early February, NTGR took a big 10% drop after its earnings report. It came all the way down from $37 to test the support at $33. Buyers have been slowly buying at just above $33.
This is something very interesting. Last quarter, NTGR went through the same movement. In late October 2012, NTGR also took a tumble from $37 down to $33, also after releasing its earnings report. About two weeks after it tested the $33 level, it went above $35 and buyers rushed in.
The pattern development in the chart right now is almost identical to what happened in late 2012. Right now, NTGR is coming up to test that $35 level and potentially turn up. If it does clear the $35 level, it could turn bullish (as described in my book, on Kindle). Will buyers come in like they did in December 2012? Will this pattern repeat itself and complete its cycle? Let's keep an eye on NTGR from here!
Good night and HappyTrading! ™