Shares of Finisar Corporation (FNSR) gained 9% Thursday after the company reported stronger than expected Q4 results (the April 2013 ending quarter) and offered a better-than-expected Q1 view. Finisar’s stock got an immediate boost on the news, hitting a HOD of $16.37, up more than 12%. The ticker however, came off of its intraday high to close at $15.80, up 9% with 2.4 million shares traded.
On the charts, Finisar has been an underperformer. Year-to-date, the fiber optic component supplier trails the broader S&P 500 Index (SPX) by roughly 7 percentage points. Such negativity is surprising, given the company is currently up 12.50% from its recent 52-week low.
As FNSR continues to make higher-highs from the current range, momentum traders could take the name to re-test its next major overhead resistance located at the $16.63 level. If it gets through that level, it could start to take off.
While some volatility is to be expected, we think FNSR’s next move up would be toward the $18 – $19 range on a short-term basis.
Disclosure: No position
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