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Possible Bearish Inside Day Candle Pattern Detected for Harmonic (NASDAQ:HLIT)

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Harmonic (NASDAQ:HLIT) based on the price action in the company's shares. Yesterday's price range of $2.96 and $3.07 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Harmonic may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Harmonic Inc. designs, manufactures, and markets digital and fiber optic systems. The Company's systems enable cable, satellite, and wireless operators to deliver video, Internet, telephony, and high-speed data services. Harmonic's TRANsend digital product line combines and customizes content from a variety of sources.

Harmonic (NASDAQ:HLIT) has potential upside of 108.3% based on a current price of $3.00 and analysts' consensus price target of $6.25. Harmonic shares should first meet resistance at the 50-day moving average (MA) of $3.29 and find additional resistance at the 200-day MA of $4.59.

In the past 52 weeks, shares of Harmonic have traded between a low of $2.51 and a high of $7.98 and closed yesterday at $3.00, which is 20% above that low price. Over the last five market days, the 200-day moving average (MA) has gone down 1.4% while the 50-day MA has advanced 0.6%.

SmarTrend recommended that its subscribers protect gains by selling shares of Harmonic on November 16th, 2015 by issuing a Downtrend alert when the shares were trading at $5.15. Since that call, shares of Harmonic have fallen 40.4%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bearish am inside day candle harmonic

Ticker(s): HLIT