Chart of the Day: Ciena (CIEN)

NYSE: CIEN | Ciena Corporation  News, Ratings, and Charts

CIEN – Ciena (CIEN) had been in a trading range for several weeks, but just broke rectangle resistance.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from!

A rectangle pattern developed in Ciena Corp (CIEN).  The resistance level was broken yesterday but I am still looking to possibly make a trade.

CIEN is a network strategy and technology company. It provides network hardware, software, and services that support the transport, aggregation, service delivery and management of video, data, and voice traffic on communications networks. The company is well-suited to benefit from the modernization of networks by telecom carriers to meet increasing needs.

Take a look at the 1-year chart of CIEN below with added notations: 

Chart of CIEN provided by TradingView

CIEN had been in a trading range for several weeks. During that period of time, the stock formed a resistance level at $57 (red) and a level of support at $52 (green).  At some point the stock had to break one of the two levels created by the rectangle pattern, and yesterday the stock broke the resistance level.

One basic tenet of technical analysis is that broken resistance turns into potential support and visa versa. After a break above resistance (or below support), there is sometimes a return to test this newfound support level (or resistance level). A return to or near the original breakout level can offer a second chance to enter a trade. 

Therefore, the ideal opportunity for a trader at this point would be to buy CIEN on a pullback at or near that $57 level, with the assumption that it will now be a support level.

Have a good trading day!

Good luck!

Christian Tharp, CMT


Want More Great Investing Ideas?

5 WINNING Stock Charts  

9 “BUY THE DIP” Growth Stocks for 2020

Newly REVISED 2020 Stock Market Outlook

7 “Safe-Haven” Dividend Stocks for Turbulent Times

CIEN shares rose $0.28 (+0.48%) in premarket trading Tuesday. Year-to-date, CIEN has gained 39.19%, versus a 1.17% rise in the benchmark S&P 500 index during the same period.

About the Author: Christian Tharp

Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CIENGet RatingGet RatingGet Rating

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from!

Top Stories on

: uber | Uber Technologies, Inc.  News, Ratings, and Charts

Betting On A Big Move In Uber

UBER or LYFT? Which Rideshare Service is Best For Traders?
NYSE: XOM | Exxon Mobil Corporation  News, Ratings, and Charts

Not All Stock Yields Are the Same

The lowest treasury bond in over 2 centuries has some stocks still in prime position like: XOM and PSA.
NYSE: AJG | Arthur J. Gallagher & Co.  News, Ratings, and Charts

3 Stocks that Wall Street Analysts Recommend to Buy

Analyst ratings can help investors make informed decisions on stocks. Here are four buy-rated stocks to consider: Arthur J. Gallagher & Co. (AJG), Brunswick Corp (BC), and Bandwidth (BAND).
NASDAQ: JD |, Inc. News, Ratings, and Charts

4 International E-Commerce Stocks You Need to Know About

The e-commerce market has been soaring as coronavirus fears have kept shoppers indoors. Here are four international e-commerce stocks riding the online shopping wave: (JD), MercadoLibre (MELI), Sea Limited (SE), and Jumia Technologies (JMIA).
NASDAQ: NFLX | Netflix, Inc. News, Ratings, and Charts

The Best FAANG Stock to Own This Month

Why I believe that of the five stocks that comprise the acronym FAANG, Netflix (NFLX) is the stock to own in August.

Read More Stories

More Ciena Corporation (CIEN) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CIEN News