A Technical Look At Today's Sierra Wireless Share Collapse
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Sierra Wireless, Inc. (USA) (NASDAQ: SWIR) shares were trading lower by $1.67 (6 percent) at $24.21 in Monday's session. With no relevant news out on the issue, let's examine the technicals to come with an explanation for today's sharp decline.
After a lower open ($25.50 compared with Thursday's close of $25.88), it managed a brief pop to $25.65 before collapsing.
The momentum on the downside was accelerated when the issue breached its former low for the move ($24.31), reaching $23.81 before rebounding back over $24. The current low coincides with October 16 low ($23.95).
The decline it taking place on heavier than average volume. So far, 560,000 shares have traded compared with its 20-day average of 549,000 shares, with over two hours remaining in the session.
Shares are down about 50 percent ($23) year-to-date.
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