NTGR: Gearing for breakout

January 18, 2018 08:00 AM

NetGear Inc., a networking play unchanged year-to-date and down 4% during last 12-months, broke out to nine-month highs dating back to March 20 in mid-December. Earnings momentum is turning around with back-to-back gains of 0.4% and 11.8% (Q2 and Q3) after three straight quarterly losses.

It recently recorded a double bottom near $44, which set the stage for the current rally. NTGR broke above a bull flag trigger of 52, which carries a measured move to around the $60 number. Enter on a pullback at 53.25. Add on at a buy point above 60.81. 

About the Author

Doug Busch has been trading the U.S. equity markets for two decades using traditional technical analysis, as a trend follower, with an emphasis with Japanese candlesticks. @ChartSmarter