Finisar Stock Technical Analysis Ahead of Earnings Report Today (FNSR)


Earnings Per Share represents the portion of a company's profit allocated to each outstanding share of common stock. The net income (reported or estimated) for a period divided by the total number of shares outstanding (TSO) during that period.

Finisar Corporation (NASDAQ:FNSR) has met or exceeded estimates on all previous earnings reports. The company is announcing the Q4/2011 EPS today while the stock closed during Friday’s trading session at about $15 per share. The daily FNSR stock graph shows a decline, but at the same time both MACD divergence and a rising RSI are apparent. The bullish reversal signal in early-June also indicates a trend’s reversal that is likely to happen at the support level of the weekly chart’s channel. Don’t forget that George Soros has also bought FNSR shares in the last quarter!

Finisar (FNSR) stock graphs

Finisar (FNSR) stock graphs

Finisar’s tech stock is currently trading way below the 200-day moving average that is fluctuating around $18 in the past 6 months. MKM Partners has recommended the FNSR stock as a Buy and set a profit target of $24, which is also what I would choose as a target, being the latest resistance level indicated in the weekly graph. The necessary stop loss should be placed exactly below $12, which is the lowest low since March 2011. FNSR stock price used to be between $150 and $500 a decade ago.

Disclosure: I have no positions in FNSR stock, but may initiate a long position in FNSR over the next 72 hours.