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Buy This Cloud Stock if It Drops Below $10

EGHT is trading in a powerful bull channel and holding support on pullbacks

   

8×8 Inc. (EGHT) — This telecommunications company develops services for Internet protocol (IP), telephony and video applications. It also offers web-based conferencing and cloud-based computing services. I first recommended EGHT on Nov. 17, 2011, at $3.85, and several times since as a key cloud computing holding.

On Aug. 26, at $9.40, I said, “The bull channel formed following the breakout in late May provides added technical support. On July 31, and again on Aug. 21, the company was granted new patents related to its conferencing technologies.”

On Tuesday, it was announced that 8×8 Inc. placed 23rd out of 100 on Forbes’s 2013 list of “America’s Best Small Companies.”

Technically, EGHT is trading in a powerful bull channel that began in April. It has support at its 50-day moving average at $9.85, and that would be the ideal spot to buy it on a pullback. But despite the overall market uncertainties, this stock has held immediate support at its 20-day moving average at $10.50.

Traders should plan to buy on a pullback under $10. My trading target remains $12, but long-term investors should buy now and hold for potentially substantial returns.

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chart key 300x84 Buy This Cloud Stock if It Drops Below $10

Disclosure: Sam Collins owns shares of EGHT.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/trade-day-8x8-inc-eght/.

©2014 InvestorPlace Media, LLC

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