NetApp Inc. (NASDAQ:NTAP) Plunges As UBS Downgrades To Neutral

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Dallas, Texas 04/22/2014 (FINANCIALSTRENDS) – NetApp Inc.(NASDAQ:NTAP) has seen a fierce downtrend right from the beginning of March as a result of UBS downgrading the stock to neutral, the stock has also now broken the support zone from where the stock bounced back recently at $36.11. The stock is currently trading below its 50 day moving average and 200 day moving average. The 50 day moving average currently at $38.43 has crossed over the 200 day moving average at $40.32 which technical analysts call a death cross and is a bearish sell indicator and we believe the weakness in the stock should persist and the stock might see lower levels.

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The momentum indicators for NetApp Inc. (NASDAQ:NTAP) are in negative territory and are giving a sell signal which confirms our bearish stance as stated above. The relative strength index for the stock has also given a sell signal and is showing signs of sliding down further and makes us firmly believe that the stock can see levels of $31 in the near term.

The weekly charts for NetApp Inc.(NASDAQ:NTAP) are painting a similar picture to that of the daily charts wherein the stock is trading below the 50 day moving average and the 200 day moving average and are showing signs of weakness. The momentum indicators as well as the relative strength index for the stock are showing weak sustainable levels and strong downtrend bearish signs and makes us believe that the stock might head lower to levels of $32.5 in the next few weeks.

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(Figure): Daily chart for NetApp Inc.(NASDAQ:NTAP)

 Latest Buzz:

UBS in a recently released research report have turned negative on the stock citing reasons about the outlook of consumers spending on storage as they believe that consumers would pause and look at other options which are cheaper available to them.UBS downgraded the stock to neutral and reduced the year end price target on the share. Target reduced from the current $50 to $40 (full year).

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