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Stock Alert: Novellus Tries To Hold Support

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July 12, 2011 – Comments (1)

Novellus Systems, Inc. (NASDAQ:NVLS) is getting smacked today on the back of a poor outlook. The stock is trading at $31.90, -3.88 (-10.83%). This area is interesting for one main reason. On the daily chart, it is a key support level. The big question is, will it hold?  Watch for this level to possibly see a solid bounce higher. While the stock market is moving slightly higher, NVLS is near the lows. Wall Street is definitely not cheering their future outlook. 

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com

1 Comments – Post Your Own

#1) On July 12, 2011 at 1:15 PM, davejh23 (< 20) wrote:

What is the key support level?  It fell straight through the 50 day and 200 day averages.  It fell straight through it's long term upward trendline.  It bounced near this level in May, but the 200 day average was also right around this level in May...I don't know, but I'm assuming there was some news that caused the 15% jump in 2 days in the first week of May.  Their report today was in-line with expectations, but those expectations had been lowered almost 30% in the last few months.  The company's Q3 revenue estimate was reduced ~18%.  Even if this is a key support level, stocks don't typically bounce at technical support when the move down is driven by this kind of news...especially since the stock never really reacted to the original 30% cut to EPS estimates.  I wouldn't be suprised to see the stock fall back to $24-25 where it spent much of 2010.

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