Seagate Technology (STX) Tanks After Earnings, Here’s The Trade

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Jul 29, 2020 at 1:28 PM EDT

The next major technical support level for the stock will be around the $38.50 area. This is where the stock staged a major reversal pivot on the weekly chart.

This morning, leading data storage company, Seagate Technology Plc (STX), is plunging after reporting earnings that failed to impress the street. The stock is trading lower by $4.93 to $43.63 a share. Traders and investors should note that the stock is now trading below its important 200-week moving average. This chart formation puts the stock in a very weak technical chart position and often indicates lower share prices are ahead.

The next major technical support level for the stock will be around the $38.50 area. This is where the stock staged a major reversal pivot on the weekly chart. Often, reversal pivots will be defended by the institutional crowd when they are initially tested. This is a level where I would likely look for a long side trade in the stock.

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