Two Tech Names Worth Getting Up Early For

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

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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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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