Last time we looked at Ambarella Inc. (AMBA), I noted that it could be a case of market valuation representing the Gartner Hype Curve. While this still might be the case in the long-term, the short-term to medium-term mode appears to be stuck in a sideways-bearish market. Recently, we saw a bearish breakout that opened with a gap, which is a bearish signal. Ambarella (AMBA) Daily Chart(click to enlarge)Bearish Breakout and Pullback:- The daily chart shows price breaking below a key support/resistance area which was between roughly 47.50 and 48.80. - After almost tagging 40.00, AMBA started to pullback. - I think we should anticipate resistance in the 48-50 area. - There is still downside risk towards 40, then towards the 2016 lows in the 33.50-35 area. - A break back above 50.00 will be needed to bring back some hope in AMBA. - Until then, this stock remains neutral-bearish, with emphasis on the bearish mode.