Ciena Corp ( $CIEN ) is a maker of Telecom Equipment. It’s industry group is $DJUSCT. Peers include $ANET / $CSCO / $JNPR / $ARRS / $UBNT among others
The Bullish Case for $CIEN
These technical factors make for a nice bullish set up on the weekly chart
- RSI has broken trend and is turning up
- PPO momentum indicator is presenting a bullish crossover after a modest pullback
- Relative performance of both stock and industry group have turned up ( bottom panels )
- Demand Index is positive with ADX just below 20 and rising
- Price is poised just below resistance in a massive cup n handle formation. You could also easily draw the formation as a big inverse head and shoulders. Either way you choose to interpret the price action, the projected move is the same.
- On a measured move basis, the formation projects a 40% upside move with a convincing breakout through $27.50
- With Earnings not scheduled until the end of August, there is no immediate Earnings risk
- A break above and hold of $27.50 by the end of the week officially triggers the trade.
- Traders can get long via CALL options or common with a stop below the breakout zone ; anywhere between $27 – $27.50 should be fine.
- If the trade does trigger, my personal trade preference would be to step aside prior to earnings, then reassess the stock after the earnings risk has cleared.
Annotated Weekly Chart of CIEN HERE
Thank you for Reading!
Good Luck and Happy Hunting!!