MLNX was downgraded today for valuation reasons which is normally a good reason to buy a leading stock on weakness. However, MLNX is also getting hit due to negative news out of INTC. INTC owns just over 10% of MLNX, so for these reasons, MLNX is selling off on volume.
That said, MLNX obeyed the 10-day moving average for at least 7 weeks so could be sold on a 10-day violation. It violated its 10-day today as it undercut its low of August 30 of 111.77 so could have been sold there, or if one wishes to try to hold onto their position a little longer, one could simply use an undercutting of today's low as a 10-day violation to sell.
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