Seagate Technology PLC - (STX) - March 8, 2023
In the Daily Stock Report, we often look at stocks which has climbed up through the yellow zone of their reports and have entered the green zone. Recent trading in data storage device producer Seagate Technology (STX) reminds investors that the Yellow Neutral Zone is an area of transition and that early stage recovery trends don’t always work out.
After spending most of a year in the Red Unfavored Zone of the SIA S&P 500 Index Report, Seagate climbed up into the yellow zone in January which looked encouraging at the time. In recent weeks, however, Seagate’s relative performance has weakened and the shares have dropped back down into the Red Zone, posting a loss of 9.9% for the time it was in the yellow zone.
Seagate finished yesterday in 257th place, down 6 positions on the day and down 44 spots in the last month.
Seagate Technology (STX) shares, which had looked promising after breaking out of a base back in January, have faltered in recent weeks. Last month, the shares ran into resistance near $72.50, an old support level, and since then, they have been under renewed distribution, dropping back under their 50 and 200-day moving averages.
A drop below $60.00 would confirm the start of a new downswing with next potential support at a previous breakout point near $55.00, then the $50.00 round number. Initial resistance on a rebound appears near $65.00 then $70.00.
The recovery rally in Seagate Technology (STX) which unfolded over January and February has faltered into March. A High Pole ran into resistance at a 45-degree downtrend line near $73.75 and the shares have since rolled down into a column of O's, starting a correction.
A decline below $60.50 would trigger a bearish High Pole warning. Support below there could potentially appear near $57.00, $49.60 or $47.70 based on previous column lows. Initial resistance on a bounce may emerge near $66.80, based on a 3-box reversal.
With a bearish SMAX score of 3, STX is exhibiting weakness against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.