Symantec Corporation (SYMC) Ripe for Bearish Reversal
Though Symantec Corporation (SYMC) posted significantly better than expected earnings on November 1, the stock continues to be heavily pressured as it has been for more than a year now. The cybersecurity software company has been struggling for quite a while, defying the relative strength of the overall technology software industry, and its stock price is down more than 22% year to date (as of Wednesday morning).
Since its positive earnings release around two weeks ago, SYMC has risen sharply, hitting a new 6-month high in the process. At the same time, price bumped up last week against its key 200-day moving average as well as the upper border of its 200-day linear regression channel. Despite the short-term surge, SYMC is fighting against the prevailing down-currents, and should be poised to revert lower. Key oscillators show upside momentum waning and a potential bearish reversal in the making.
The Technicals Rating
The Technicals gives SYMC a bearish rating of 3 (on a scale of 1-10, with ’10’ being the most bullish and ‘1’ being the most bearish). Below are some of the key technicals for SYMC, as well as other relevant information that paints a moderately bearish picture of the stock:
- Price Position vs 200-Day SMA: -3.24% (below) – BEARISH
- Position vs 50-Day SMA: +9.06% (above) – BULLISH
- Position vs 20-Day SMA: +10.03% (above) – BULLISH
- 200-Day Trend Slope (Linear Regression): BEARISH
- 100-Day Trend Slope (Linear Regression): BEARISH
- Stochastics (14,3,3) Level: Falling from Overbought – BEARISH
- RSI (14) Level: Falling from Overbought – BEARISH
- Position in Bollinger Bands: Falling from Upper Band – BEARISH
- Sector (ETF: IGV) Long-Term 200-Day Trend: BULLISH
- Sector (ETF: IGV) Medium-Term 100-Day Trend: BEARISH
- Market (S&P 500) Long-Term 200-Day Trend: BULLISH
- Market (S&P 500) Medium-Term 100-Day Trend: BEARISH
- Short Interest Ratio: 2.82% – NEUTRAL
- Mean Implied Volatility (IV): 42.70% (52-week range of 21.85%-65.92%) – BULLISH
- Analysts’ Mean Target Price: $22.60 (slightly above current price) – NEUTRAL
- Last Earnings Move: Sharp Gap Up – BULLISH
Overall The Technicals Rating for SYMC: TTTTTTTTTT (3 out of 10) – MODERATELY BEARISH
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Chief Market Strategist at The Technicals
With more than two decades of experience as an equity analyst for several major research firms, Don has covered individual stocks (both technically and fundamentally) across a wide variety of sectors and industries, including tech, financial, and retail. He has been quoted regularly in key financial media like Bloomberg and Reuters. Contact Don