This morning, leading data storage company, Seagate Technology Plc (STX), is plunging after reporting earnings that failed to impress the street. The stock is trading lower by $4.93 to $43.63 a share. Traders and investors should note that the stock is now trading below its important 200-week moving average. This chart formation puts the stock in a very weak technical chart position and often indicates lower share prices are ahead.
The next major technical support level for the stock will be around the $38.50 area. This is where the stock staged a major reversal pivot on the weekly chart. Often, reversal pivots will be defended by the institutional crowd when they are initially tested. This is a level where I would likely look for a long side trade in the stock.