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8×8’s Chart Says to Give It Another Chance

After a disappointing few months, EGHT appears to be headed higher

By Sam Collins, InvestorPlace Chief Technical Analyst

http://invstplc.com/1uklHvg

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. Forbes included 8×8 on its 2013 list of “America’s 100 Best Small Companies,” and at the end of February, the stock was added to the S&P SmallCap 600 Index.

I first recommended EGHTon Nov. 17, 2011, at $3.85, and most recently on April 1, at $10.83. The stock briefly traded above $11 in early April, but then fell sharply, bottoming at $6.68 on June 5, where it issued a buy signal from my proprietary indicator, the Collins-Bollinger Reversal (CBR).

On July 21, another CBR buy signal was triggered, and within three days, the stock jumped from $7.63 to $8.83, opening a gap at $7.63 to $7.96. All but $0.10 of the  gap has been covered, and the stock appears headed back to $9.50, which is my trading target.

EGHT was also highlighted Monday by our Profit Scanner system with a target of $9.40-$9.70. Analysts’ 12-month mean target is $11.72. Buy EGHT at the market with a stop-loss order at $7.50.

EGHT Chart
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Chart Key


Article printed from InvestorPlace Media, https://investorplace.com/2014/08/trade-day-8x8-inc-eght-4/.

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