Small-Cap Tech Stock Could Plummet More Than 20%

by Sam Collins | April 9, 2014 1:59 am

Small-Cap Tech Stock Could Plummet More Than 20%

Synaptics (SYNA[1]) — This small-cap company develops, markets and sells custom-designed human interface solutions for electronic devices and products such as smartphones, tablets and ultrabooks.

I first recommended SYNA on Nov. 6[2], at just below $46, with an initial trading target of $51. That objective was met on Nov. 27 at a high of $51.23. On Dec. 16[3], I wrote that traders should have already sold their positions, but longer-term buyers may wish to hold for greater gains.

The stock continued higher, topping out just above $67 on Feb. 26, and established a bear channel with resistance at $63.

SNYA was recently identified as a possible short-sale candidate by our Profit Scanner[4] system, which has a downside target of $44 to $47. As with all short positions, check with your broker for any special requirements and the ability to borrow the stock. A stop-loss order should be entered at $64.

04 09 14 syna 300x188 Small Cap Tech Stock Could Plummet More Than 20%
Click to Enlarge

chart key 300x84 Small Cap Tech Stock Could Plummet More Than 20%[5]

Endnotes:
  1. SYNA: http://studio-5.financialcontent.com/investplace/quote?Symbol=SYNA
  2. on Nov. 6: http://investorplace.com/2013/11/trade-day-synaptics-syna/
  3. On Dec. 16: http://investorplace.com/2013/12/trade-day-synaptics-syna-2/
  4. Profit Scanner: https://order.investorplace.com/index.jsp?sid=DU8101
  5. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2014/04/trade-day-synaptics-syna-3/
Short URL: http://invstplc.com/1egPfE4