Stock Chart Analysis NAVI

Stock Chart Analysis NAVI

NaviSite, Inc. (Public, NASDAQ:NAVI)

NAVI recently had a strong move to break out of a channel it was following as it consolidated a prior breakout. It has been pulling back the past two days drifting along the upper trendline testing it as support. Often when a stock breaks through a trendline that was serving as resistance, it pulls back to it, where the area should now become support. The logic behind this is that people who sold the stock thinking it would fail at resistance feel like they are getting a second chance to get in, and fear missing out on a breakaway move.

Update: As I was finishing this up, I checked and saw that NAVI reported earnings after hours. It was trading a little higher, so it may be in play tomorrow. In this case, I would probably wait till after 10 am for the opening range to be established.


Good Trading,


Joey

for more analysis, check out downtowntrader.com