Seagate Technologies (STX) traded 6% higher on Tuesday morning, after reporting earnings that beat Wall Street expectations.
The company reported earnings per share of $1.46 and total revenue of $2.8 billion, compared to analyst estimates of $1.33 and $2.75 billion.
Seagate Beats, More Downside Likely
In reviewing the STX chart below, we can see that the stock is in the declining phase of its current market cycle.
With healthy gains since September, a modest revenue beat may not have been good enough. This drop suggests a big top could be forming.
Our near-term target is around the $47 level.
Seagate Technologies (STX) Stock Chart with Weekly Bars
For an introduction to cycle analysis, check out our Stock Market Cycles video, or watch the askSlim Market Week show every Friday on our YouTube channel.
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The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
