Bearish Moving Average Cross by Volcano (VOLC)

Published on Mon, 12/03/2012 - 12:19
By Peter Chu in Moving average crossovers, volc, moving crosses, nasdaq:volc, volcano

Volcano (NASDAQ:VOLC) shares have crossed bearishly below their 10-day moving average of $27.02 on a volume of 207K shares. Swing traders may find an opportunity for a short position, as such a crossover often suggests lower prices in the near term.

Potential upside of 14.4% exists for Volcano, based on a current level of $26.73 and analysts' average consensus price target of $30.59. The stock should run into initial resistance at its 200-day moving average (MA) of $28.10 and subsequent resistance at its 50-day MA of $28.11.

Volcano Corporation develops, manufactures, and commercializes medical devices. The Company's products include intravascular ultrasound (IVUS) catheters and Functional Measurement guide wires used to diagnose and assess diseases of the coronary and peripheral vasculature.

In the past 52 weeks, shares of Volcano have traded between a low of $21.38 and a high of $30.59 and are now at $26.73, which is 25% above that low price. Over the last five market days, the 200-day moving average (MA) has remained constant while the 50-day MA has remained constant.

By Peter Chu
pchu@fnno.com

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