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We are removing Zscaler (ZS) from our long ideas because it poised to log a second consecutive close below its 50-day moving average.
Today, we feature a short opportunity in Itron Inc (ITRI), a midcap technology company:
ITRI had signs of upside exhaustion as it approached long-term resistance near $81, and the ensuing reversal has resulted in a short-term breakdown below the 50-day (~10-week) moving average that should see downside follow-through based on the posture of the daily momentum gauges, which point down.
ITRI is poised for a greater decline following an overbought downturn in the weekly stochastics and a loss of intermediate-term momentum that has resulted in the weekly MACD becoming “pinched” toward a “sell” signal, which would provide an additional catalyst lower.
Support near $59 provides a downside target for ITRI, which extends back to the May breakout above long-term resistance going back to July 2022. A stop-loss can be placed near the 50-day moving average at ~$72.
Itron Inc (ITRI, $69.09)
Target: $59
Stop-Loss: $72