JDS Uniphase Coming Down?

Published on Friday, 27 January 2012 07:52 Written by Christian Paolinetti

New York, January 27th (TradersHuddle.com) - Shares of JDS Uniphase Corporation (NASDAQ:JDSU) closed the trading day at $13.47 well above its calculated resistance at $11.87, which was calculated from a peak and throughs algorithm, making traders worry about a possible pull back in the stock price.

JDS Uniphase Corporation (NASDAQ:JDSU) provides communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. The Company also provides optical solutions for medical/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense.

JDS Uniphase's stock broke out of its defined range that had support at $9.22 and resistance at $11.87. Now the stock is working on developing a new trading range, which should be defined by the high setup after this breakout and its probable support, which could be its previous resistance level $11.87.

From a technical perspective traders should wait to establish a position in JDS Uniphase until a base in the stock develops that can provide good reference points to the upside and most importantly to the downside, for traders have a risk reference point before entering into a position on JDS Uniphase stock.