Mellanox Technologies (MLNX)

Company

mlnx(2-1)_1yr
MLNX 1-year chart

"Mellanox Technologies is a leading supplier of end-to-end connectivity solutions for servers and storage that optimize data center performance. Mellanox products deliver market-leading bandwidth, performance, scalability, power conservation and cost-effectiveness while converging multiple legacy network technologies into one future-proof solution. For the best in performance and scalability, Mellanox is the choice for Fortune 500 data centers and the world's most powerful supercomputers. Founded in 1999, Mellanox Technologies is headquartered in Sunnyvale, California and Yokneam, Israel." (company website)

mlnx(2-1)
MLNX 6-month chart

Buy

Mellanox gave the marketing a big earnings surprise by beating Expectations, driving the share price above the 200-day moving average and putting the 50-day moving average on an upward slope.

  • Percentage price oscillator (PPO) — big boost from earnings, then fell back below but is now just a whisker below the signal line
  • Volume — very heavy volume right after earnings; when volume and price move up together this is supposed to be a very bullish sign

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

Sell

gain Bottom line
10%

MLNX traded this week near the upper bound of the channel, and I thought it prudent to protect the gains. I put in a stop-loss order to preserve at least $1 per share profit. And that's what she wrote.