Sell or Short This Tech Stock Immediately

Cognex Corp. has turned back from its 200-day moving average

   
Sell or Short This Tech Stock Immediately

Cognex Corp. (NASDAQ:CGNX) — This producer of machine vision products that capture and analyze visual information to automate tasks primarily in manufacturing processes is estimating that earnings for 2012 will fall to $1.55 from $1.63 last year. Analysts have recently reduced their targets and earnings estimates due to the continuing global economic slowdown and the company’s exposure to Europe.

Technically, CGNX bounced from about $30 in July to over $36 where it turned back from its 200-day moving average. Sell CGNX if you own it and short it if you are a trader with a downside target of $30.

Short-selling is a high-risk, speculative technique, so a stop-loss order should be entered to protect against unlimited losses. Check with your broker for any margin requirements.

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Article printed from InvestorPlace Media, http://investorplace.com/2012/10/trade-of-the-day-cognex-corp-nasdaq-cgnx-2/.

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