Symantec Corp (SYMC) has today touched a fresh 22-month low, but its chart nonetheless holds potential promise for bulls.
First, though, a word about the broad markets. These closed modestly lower after Friday's significant rally. The S&P500 ended 0.2% in the red, while the NASDAQ and Dow Jones Industrial Average each shed 0.4%. The bottoming tail candle on the DJIA hourly candles chart mentioned in a post from this morning managed to hold.
The big-picture view of SYMC is decidedly bearish. As already mentioned, the stock is trading at lows not seen since August 2010. The 13-dollar stock is more than $3 below its 200-day simple moving average (SMA). And yet, all is not bearish: SYMC is currently nudged right against 2-year price channel support.
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| SYMC, Jan 2010 to present, daily candles |
The hourly candles chart also shows SYMC at price channel support, this time with regard to a channel stretching from late April. Meanwhile, the 5-minute candles chart is modestly bullish, with price action surpassing the resistance line of a 6-day channel and meeting its 200-period SMA (5-minute candles).
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| SYMC, Feb 1 to present, hourly candles |
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| SYMC, 10 days, 5 minute candles |
To be sure, a long position in SYMC would need a tight stop-loss point, probably no lower than a few cents below $13.00. While many instances of securities' encountering their 2-year price channels are met with a change in trend, there are no certainties with regard to the markets.
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