Network Appliance (NTAP)

[NeuroticTrader1]

IBD moved us from 22 spot to 20 on the IBD 50. The notation says that NTAP's chart shows that it pulled back to its 10 week moving average after clearing the cup with handle pattern. Thursday's action gave us a spinning top candlestick, Friday's gave us a bullish inverted hammer confirming the downward trend has halted nicely on its 10 day moving average line, what we want to see. Remember, a pull back after a cup with handle shakes out all the scared hands. Also, pulling back to the 10 week line offers investors a second chance to buy shares before a major run up begins. I know you guys already know all of that but just thought it was worth repeating. Another note is that when the price dropped, it dropped out of its lower channel on the daily chart. Since we have several bullish signals on the daily all at once, the price should be working its way back into the channel. As for the weekly, of course I would love to see an engulfing bull here by the end of the week. Maybe the presidents state of the union address will help us out here!!