New trade idea: Infinera Corp. (INFN)
INFN is a small-cap technology stock specializing in telecommunications equipment. The stock crossed our radar as a possible “turnaround” from a technical perspective.
INFN is advancing from a corrective phase within the context of a long-term uptrend, supported by the rising weekly cloud model (denoted by the shaded area on the chart). The stock has held cloud and trendline support successfully, and recently broke out above November’s resistance, supporting a continuation of the relief rally.
The rally is associated with improved intermediate-term momentum per the weekly MACD indicator, further evidence that a turnaround is developing. A breakout above the 200-day (~40-week) moving average near $9.10 would be an incremental positive.
We assign a long-term technical target of former resistance at the December 2020 high (about 27% above). We recommend placing a stop-loss order below $8.20 support (about 10% below).
Infinera Corp. (INFN, $9.07)
Long-Term Target: $11.51
Stop Loss: $8.20
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