Harmonic Holds the 50-day
It’s often interesting to find stocks making new highs when the market tanks. Today’s chart focuses on such a name: Harmonic.
Notice how the provider of video software advanced in late September and early October as the S&P 500 and Nasdaq-100 hit new 52-week lows.
That relative strength followed an Analyst Day on September 15. Heavy volume occurred as prices rose the next session, a potential sign of new buying after the event.
HLIT then rallied about 40 percent. It reported better-than-expected quarterly numbers on October 31, but traders “sold the news.” The shares proceeded to form an A-B-C correction but are trying to bounce at their 50-day simple moving average (SMA).
Next, the pullback held a 50 percent retracement of the preceding rally.
Finally, stochastics are trying to rebound from an oversold condition.
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TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
Notice how the provider of video software advanced in late September and early October as the S&P 500 and Nasdaq-100 hit new 52-week lows.
That relative strength followed an Analyst Day on September 15. Heavy volume occurred as prices rose the next session, a potential sign of new buying after the event.
HLIT then rallied about 40 percent. It reported better-than-expected quarterly numbers on October 31, but traders “sold the news.” The shares proceeded to form an A-B-C correction but are trying to bounce at their 50-day simple moving average (SMA).
Next, the pullback held a 50 percent retracement of the preceding rally.
Finally, stochastics are trying to rebound from an oversold condition.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.