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| Gator's Chart of the Day (NTAP Daily - Click chart for a better view)
Many of the networking and storage stocks are quite extended. NTAP has lagged by a day or two in making a significant move so we could see some more upside before it needs a rest.
In November the stock gapped down hard on huge volume and just this week appears to have confirmed support around 33.50. Wednesday it printed a pretty green candle on average volume with an impressive follow through on Thursday on much higher volume. The stock closed above the 50 day sma after failing there on multiple tests in December. The 20 day has just turned up and remains below the 50 and well below the 200. It is at December resistance but with the 50 day as support I think it can move into the gap.
Here's one way to trade it: Watch (or set an alert) for a move above Thursday's intraday high of 37.67. Take an initial position (maybe 1/4 or 1/3 of what you really want to get) and put a stop around 36.75. That is tight (<3%) but the thesis is the stock is moving up and if it falls it's not moving up. When you have profits (say +3-4%) the stock will be around 39 and clearly into the gap. Consider adding there and put a stop at the top of the gap.
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