Ciena Corp (CIEN) recently gapped up on earnings breaking through a daily supply zone and is looking to test old highs from 2010-2011.
GAP REVIEW
On June 6th, 2013, CIEN gapped up taking out the $18.00 supply zone (resistance). The stock immediately found demand and pressed up over into the $19.00 level. And just last week traded into new price of $20.00 showing a strong hand in the face of a market pulling back.
KEY LEVEL
CIEN has built a level of demand into the 19.60 level. And with overhead supply for targets being so far away into 24.00 and 28.00 it justifies a nice swing trade.
THE TRADE
Any pullback into demand at $19.60 area is a nice entry for a swing long. The stop would be under the $18.15 and targets would be $24.00 and 28.00 area.
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Disclosure my Swing Newsletter Subscribers have been alerted to this same setup.
