Nuance Communications, Inc. (NUAN)

[chmcnfunds]

From the Fly:

News Breaks
May 8, 2014
14:14 EDT NUAN Nuance technical comments ahead of results
The shares are in neutral mode ahead of earnings after the bell. In the prior three months the shares have also traded flat except for one brief upside spike over the last two weeks of March. On a daily chart a hand-drawn support line gives us $15.50 as an important support level. On worse than expected results or guidance on a band of increasing disappointments, support would be at $14.77, $14.08, and $13. The latter is the 52-week low. On an upside surprise in results or guidance, there is a large percent of the float short at over 13.5%. That could provide ample fuel for a short-squeeze if the fundamental news supports it. Resistance levels to watch as upside objectives on an increasing band of unexpected positives are at $16.69, $17.57, and $18.13. If we look at a 2-year chart the $18 level pops into prominence as prior and rather strong support. Retaking the $18 area would therefore be bullish for price. The $18 area is the zone from which price collapsed in October 2013, leading up to the 52-week low in November 2013.

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