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Possible Bearish Inside Day Candle Pattern Detected for QLogic (NASDAQ:QLGC)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in QLogic (NASDAQ:QLGC) based on the price action in the company's shares. Today's price range of $9.38 and $9.58 is within yesterday'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 QLogic may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

QLogic Corp. supplies high performance storage networking solutions and networking infrastructure solutions which are sold primarily to original equipment manufacturers and distributors. The Company produces host bus adapters and Fibre Channel switches including core, blade and stackable switches. QLogic also supplies enclosure management and baseboard management products.

There is potential upside of 57.3% for shares of QLogic based on a current price of $9.43 and an average consensus analyst price target of $14.83. QLogic shares should first meet resistance at the 50-day moving average (MA) of $13.10 and find additional resistance at the 200-day MA of $13.48.

QLogic share prices have moved between a 52-week high of $19.00 and a 52-week low of $8.37 and are now trading 13% above that low price at $9.43 per share. Over the last five market days, the 200-day moving average (MA) has gone down 0.2% while the 50-day MA has declined 2.7%.

SmarTrend recommended that its subscribers protect gains by selling shares of QLogic on June 30th, 2015 by issuing a Downtrend alert when the shares were trading at $14.33. Since that call, shares of QLogic have fallen 32.9%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bearish inside day candle qlogic

Ticker(s): QLGC