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Network Appliance - NTAP at Trader’s Narrative

Network Appliance - NTAP

Network Appliance gapped down and broke below $30.30 where it had found support twice previously (on daily chart). The morning volume was surprisingly muted for such a technical deterioration:

NTAP 15 min chart.png

The first candle closed down down but left a long lower tail which was a bit ambivalent. The second candle was decidedly more negative, closing at its low and the low of the opening range. The next three candles were each successively narrower in range.

The best entry short was just below the 5th candle (red circle). Price expanded downward again after this brief contraction and reached the Fibonacci extension target.

The downtrend continued, no doubt aided by the general market weakness and the fact that Network Appliance is in the internet/tech sector. Again I saw the ultimate low being put in when volume spiked and when a beautiful hammer was printed with a very long lower tail.

Subsequent volume exceeded the hammer’s volume but I think there’s something to be said for this pattern which seems to signal the end of intraday selling pressure.

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One Response to “Network Appliance - NTAP”  

  1. 1 idempotent

    Yeah, looks like that 30 vicinity has been support or resistance all through 2005 and 2006. Almost makes me feel sorry for everyone that’s been “backing up the truck” on NTAP thanks to Cramer.

    almost… :-)

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