Two Tech Names Worth Getting Up Early For
- Posted by Greg Harmon
- on April 30th, 2012
Allot Communications, $ALLT and Radware, $RDWR both report earnings before the bell tomorrow. From the looks of their charts heading in it may be worth setting your alarm early for the pre-market action.
Allot Communications, $ALLT
Allot Communications, $ALLT, is breaking consolidation higher over 24.50. There is no resistance higher. Support comes at 23.35 and 22 followed by 21.10 and 19. The Relative Strength Index (RSI) is bullish and turned higher with a Moving Average Convergence Divergence (MACD) indicator that is improving towards a positive cross. A bullish bias with over 4% short interest to provide a little fuel. The reaction to the last 6 earnings reports has been a move of about 3.7% on average or $0.95 making for an expected range of 23.59 to 25.49. The at-the money Straddles imply a larger move of $2.50 by May Expiry, but were too thin to put a trade on ahead of the report.
Radware, $RDWR has been on a great uptrend since October. There is no resistance higher. Support comes at 37.60 and 36.80 followed by 36 and 34.50 before 34, 32.90 and 31.20. The RSI is bullish and strong with a MACD that is fairly flat but positive. A bullish bias on this name as well. The reaction to the last 6 earnings reports has been a move of about 4.9% on average or $1.90 making for an expected range of 36.58 to 40.38. The at-the money Straddles imply a larger move of $2.50 by May Expiry but were also too thinly traded for a pre-earnings trade.
Get some sleep and be prepared and ready to catch these potential moves.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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