Hot Stock: DragonWave, Shares Drop 20.2% (DRWI)
DragonWave (NASDAQ:DRWI) is one of today's worst performing low-priced stocks, down 20.2% to $2.73 on 1.9x average daily volume. DragonWave has traded 714,000 shares thus far today, vs. average volume of 366,000 shares per day. The stock has underperformed the Dow (-20.2% to the Dow's 0.0%) and underperformed the S&P 500 (-20.2% to the S&P's 0.2%) during today's trading.
DragonWave Inc. provides wireless Ethernet equipment for use in IP networks. The Company designs, develops, and markets carrier-grade microwave radio frequency networking equipment that wirelessly transmit broadband voice, video, and other data.
Based on a current price of $2.73, DragonWave is currently 15.7% above its average consensus analyst price target of $2.30. The stock should hit resistance at its 200-day moving average (MA) of $2.85, as well as support at its 50-day MA of $2.53.
Over the past year, DragonWave has traded in a range of $1.75 to $5.46 and is now at $2.73, 56% above that low. Over the past week, the 200-day moving average (MA) has gone down 0.4% while the 50-day MA has advanced 2.8%.
SmarTrend recommended that subscribers consider buying shares of DragonWave on November 30th, 2012 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $2.32. Since that recommendation, shares of DragonWave have risen 47.4%. We continue to monitor DRWI for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.
Keywords: penny stocks dragonwave