Today, leading flash-based storage systems provider, Pure Storage Inc (PSTG), is declining sharply after reporting earnings. The stock is trading lower by 10.0% to $15.04 a share after failing to impress Wall Street investors. PSTG stock is now trading below it’s 50 and 200-week moving averages. This puts the stock in a weak technical position on the charts and further downside is likely in the near term.
Traders and investors should now watch the $13.00 area for technical support. This is a level where the stock was defended on May 5th, 2020. It is also a level where the stock backtested a choppy base from April 2020. Often, when prior bases are tested they will get defended by the institutional crowd. This is a trade level where the stock looks solid for a long side trade.
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