Technical Trade of The Day – AboveNet
Mar 11, 2010 Uncategorized
AboveNet - 03/10/2010
AboveNet (ABVT), which provides high bandwidth connectivity solutions to businesses, yesterday fell $7.70 to $55.46, a huge 12.19% decline, after the company reported fourth quarter and full year 2009 results. The company also provided guidance for the 2010 guidance, all which served to disappoint investors.
The stock hit an intra-day low of $53.32, but managed to cut its losses. With the rebound in the shares off the day’s lows, the stock held above $55, which is a support area. However, we don’t expect to see the stock rebounding immediately and we should see a retest of that $53 area again.
A drop of $1.50 from yesterday’s close would be a 2.7% gain and traders shorting the stock here should realize that over the next five trading days. With this trade, take quick profits.
