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News Breaks
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February 9, 2010
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| 13:28 EDT |  | NTGR |
| theflyonthewall.com: | NetGear: Earnings release technical preview, high gap risk, short-skew | | BULLISH CASE: On better than expected news/outlook the stock could trade to the upper limit of the very short-term bullish price channel at $22.04. On a bullish breakout above the price channel the following resistance levels would become upside objectives: $22.27, $22.67, $23.09, $23.47, $24.40, $24.78, $25.25, $25.73, $26.26. BEARISH CASE: On worse than expected news/outlook the stock could trade to the lower limit of the price channel at $21.13. On a bearish breakdown below the price channel the following support levels would become downside objectives: $20.68, $20.35, $20.03, $19.64, $19.26, $18.92, $18.64, $18.31, $17.94, $17.52, $17.24. NOTE: Large short-base at 6 days to cover, with 4.3% of the float short. Traders are positioned for negative news. Reactions on a surprise, especially a positive one given the large short-base, have a high probability of being extreme in duration and price. High gap risk. :theflyonthewall.com |
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