Replies to post #329 on STEC, Inc - (formerly SimpleTech, Inc.) (STEC)

[realfast95]

January 6, 2010 10:31 AM EST

Noble Financial downgrades Stec, Inc (Nasdaq: STEC) from Buy to Hold.

Noble analyst says, "Shares have rallied approximately 70% from recent lows; Taking the opportunity downgrade shares to "Hold" Recent rally a function of some speculation over unlikely events be believe in the long-term growth potential for the enterprise SSD market and STEC's completive position within this market; however, shares could trade down in the near term Due to inventory overhang at EMC, STEC's first-quarter 2010 guidance will likely disappoint investors; Once first-quarter guidance is discounted in share price, we may become more constructive."

http://www.streetinsider.com/Downgrades/Noble+Financial+Downgrades+Stec,+Inc+(STEC)+to+Hold/5225641.html

[sylvester80]

Clearly news will drive STEC price. However technically, the daily chart is overbought while the weekly chart has come off the bottom from a big oversold condition. The 50% fib retrace of the $11.25 to $20 move puts us at $15 and change while the 38.2% fib is at $16.65 and closes the $16.70 gap open. Assuming no major news, technically the stock could go and test the converging 20 and 50 SMA which are at near $15 by options expiration. On the other hand and if markets cooperate, a close of the $16.7 gap open should take us up towards the $22 gap open and the 200 SMA. Also be aware that the weekly 50 SMA is starting to flatline near $14 ($14 also happened to be the resistance for the last 3 years). That means that is $15 goes then a test of the weekly 50 SMA is possible and close of the gap open at $14. Any bad news on the EMC inventory issue and I can all but guarantee that the weekly 50 SMA will be touched. JMHO. Do your DD. Good luck.