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EMC is breaking: HPQ, NTAP, EMC

After Hewlett Packard’s (HPQ) comment last night and their anticipation of lower corporate technology spending EMC (EMC) and NetApp (NTAP) are taking it on the chin.  Today, as the market opened, EMC began to break below longer term support.  This break is important to recognize. 

The Long and the Short of it:

As the Market opened on Thursday EMC began to break below longer term support, $25.29, but that is not the first red flag offered from EMC recently.  In March EMC began to break a resistance level, $28.82, it seemed poised to increase to the highest resistance level, $32.35, but it turned down prematurely.  That was the first red flag from EMC.

When the stock prematurely reversed it was a warning, and this break of longer term support that is occurring now is also a warning.  Longer term support has now been converted into resistance, and it acts a barrier to higher levels as a result.  If EMC fails to reverse back above $25.29 our combined analysis for EMC tells us to expect much lower levels.

Immediately, there are no defined longer term support levels for EMC, but for other durations there are tradable patterns.  However, the stock is broken on a longer term basis, and that tells us to control our risk if we are exposed to EMC.  Be very cautious as a result.

Although no immediate downside targets exist for the longer term in our data table, we could presume that one will appear soon given the recent break.

 

 

 

Triggers may have already come
Support and Resistance Plot Chart for

Blue = Current Price
Red= Resistance
Green = Support

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