Ceragon Networks Ltd (CRNT)

[Chart Addict]

Patience may indeed pay off for those holding Ceragon Networks. This one has been on my watch list for quite some time. As one can see from a long-term monthly chart, the price twice recently attained lows not seen since late 2002. These lows were around the beginning of 2015 and 2016, respectively. There were no splits along the way, and over the course of 2015-16, CRNT has formed what would appear to be a robust bottom formation.

The projected resistance line appears to correspond, when looking forward in time, with the resistance at the top of the formation. This intersection point will surely delineate a crucial battle between the bulls and the bears. Once the height of the formation in exceeded, many market participants should be hopping on board for the ride.



There are two other charts worth looking at before I announce some recent news. (I believe that charts for the most part tell you all you need to know, while I find the news valuable only for purposes of not buying into a stock that is about to reverse split, or file for bankruptcy).

The first of these would be a dynamically scaled Point and Figure chart, which printed a double top breakout on May 9, with a tentative price objective of $3.06. The reversal marker is on this chart.



Finally, we arrive at the daily chart, which shows a rather bullish breakout above a rising 200 day moving average. Note the rising 50 day average, which seems ready to cross the 200, sending another potential bullish signal out to the technical traders who look for such things. Note also the volume well exceeded half a million shares traded - which is quite respectable in these thinly traded markets that we have seen of late.



Finally, there is some news worth mentioning. Zacks Equity Research released an article entitled New Strong Buy Stocks for May 20th, in which CRNT is among 5 stocks added to the Zacks Rank #1 (Strong Buy) List. "The Zacks Consensus Estimate revision for its current year earnings was a positive 42.9% over the last 30 days," the article explains.