Technical Analysis of NTAP & MATK

Submited by Yaser Anwar (http://equityinvestmentideas.blogspot.com) - Network Appliance Inc. (Nasdaq: NTAP): NTAP has been in a downtrend for the past 3 months alongside the Networking Index. NTAP has been witnessing heavy distribution by institutions which is evident by the huge volume on downdays. NTAP's worries include rising finished-goods inventory, weak channel checks in Europe, concerns about sales to the federal government, SEC checking out NTAP's filings and a still historically high PE. NTAP was recently upgraded to a buy from Goldman but i believe its a good time to go short from the 20-day MA.

Martek Biosciences Corp. (Nasdaq: MATK): The worrying part for me is that MATK has been trading well below its monthly & weekly avg volumes, in a sideways pattern. Even though MATK had an 84% boost in 2Q earnings, deals with General Mills & Omega-3 approval, the weak volume signals a warning sign. The 20-day & 40-day MA look to merge, keep a close eye on the direction of 20-day, as it seems to be heading lower. The stock hasn't sold off much due to the accumulation it witnessed when it got the Canadian approval for Omega-3 & when it reported strong earnings. Until you don't see higher volume on MATK, stay away.

You May Also Be Interested In

• SWBI beats estimates by 71%, GEO nears 52-week high on policy tailwinds
• AI chip winners may face tougher road ahead as hyperscalers catch up: JPM
• AI as governor: the $6.75 trillion case for replacing politicians