Tech Data (TECD) has plunged after reporting earnings. The earnings were not bad, however, the bullish gurus had pushed Tech Data much higher than it deserved to be. The same bullish gurus are now proclaiming that the fall is a buying opportunity around $48.00. Well, Tech Data has now broken down from the support at $48.00 and is now trading at $46.80.
We disagree with the bulls. The Quantitative Screen of the ZYX Change Method shows the fair value of Tech Data to be $41.00. There is a strong probability of Tech Data going down further.
We will issue an actionable buy signal in real time in ZYX Buy Change Alert if and when all six screens of the ZYX Change Method are met. It is too early to buy Tech Data here.
