Friday, February 21, 2014

Ciena Corporation (NYSE: CIEN)

Ciena Corporation provides communications networking equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic worldwide. The company operates through Converged Packet Optical, Packet Networking, Optical Transport, and Software and Services segments. The Converged Packet Optical segment offers networking solutions optimized for the convergence of coherent optical transport, OTN switching, and packet switching. The Packet Networking segment principally provides the company’s 3000 family of service delivery switches and service aggregation switches, the 5000 series of service aggregation switches, and its Ethernet packet configuration for the 5410 Service Aggregation Switch. The Optical Transport segment transports voice, video, and data traffic at high transmission speeds. The Software and Services segment offers network software suite, including the OneControl Unified Management System, an integrated network and service management software designed to automate and simplify network management, operation, and service delivery.
Please take a look at the 1-year chart of CIEN (Ciena Corporation) below with my added notations:
1-year chart of CIEN (Ciena Corporation)
CIEN peaked last October at $28 and lost a quarter of its value from there. The stock seems to be forming a base over the last (3) months all the while hitting a very important level of resistance at $24 (blue). No matter what the market has or has not done since November, CIEN has not been able to break through that area of resistance. If the stock can break above $24 higher prices should follow.

The Tale of the Tape: CIEN has a key level of resistance at $24. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $24.
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1 comment:

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