Send me real-time posts from this site at my email
Fan Yang

A Price Top is Forming for the Share Price of Ciena Corp. (CIEN)

Ciena Corp. $CIEN has been on a persistent bullish trend, even when the general market was in contraction mode in late 2018. However, I think price action has shifted from that bullish mode, and is signaling a price top. 

CIEN Daily Chart

(click to enlarge)

Head and Shoulders?
- As we can see on the daily chart price action continued to rally at the end of February. In fact, you can argue that the rally has accelerated in 2019. 
- We should note that this bullish push came with relatively quiet volume. This would have been a general warning that the rally was not sustainable, but the low volume does not help time the price top.
- However, the strong slide at the start of Mach was an indicator that the market may have hit at least a short to medium-term price top. 
- Furthermore, the subsequent price action appears to have completed a head and shoulders, with neckline right around $37.00. 
- Last week, price did NOT break the neckline. If we see price eventually break this support, I think CIEN will slide towards the $32.35 area, near the 200-day simple moving average (SMA). 
- Also note that the RSI is sliding below 40, another sign that the bullish momentum is gone. 
- Again, we should probably expect further price decline until price is around the 200-day SMA, and the RSI is around 30 or lower.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue