Brocade (BRCD)

Company

"Brocade is an industry leader in data center networking solutions and services that enable organizations to manage their most vital information assets. It's no wonder that Global 500 companies rely on Brocade technology to keep their businesses running around the clock. Brocade has pioneered the technologies that enable highly reliable and secure data center connectivity. Today most of the world's data flows through Brocade equipment and data center networks built on Brocade technology." (company website)

BRCD
BRCD 4-month chart
BRCD
BRCD 1-year chart

Buy

Brocade beat Expectations with its May earnings report, and that gave the stock a boost that has been sustained for a week. Since then, every day has been an up-day. The 50-day moving average recently crossed above the 200-day average, which has stopped declining.

  • Percentage price oscillator (PPO) — just above and parallel to the signal line
  • Volume — months-long steady increase in volume

Based on technical analysis, MarketEdge calls BRCD a "buy" in a "strong upward trend."

Sell

gain Bottom line
-6%

I was stopped-out of the position when BRCD plunged in early trading. Since the stop had ratcheted up with recent higher closes, the loss was somewhat limited.