Symantec Corporation [NASDAQ: SYMC] was a big loser on Monday. The stock plunged by 10.68% to close the day at $22.84. The plunge came after reports that the buyout deal with Broadcom had been called off. It emerged that SYMC had refused to take anything less than $28 per share. This drove away the bullish sentiment that had been building up since the deal was announced.
From the charts, things seem to be cooling down for SYMC. After the initial drop that saw it test lows of $21.63, the stock made slight gains until markets close. This could be an indicator that the news has already been absorbed by the market. This sentiment is supported by the fact that even after this selloff, SYMC has held above the 100-day MA at $22.12. For traders, this will be a key level to watch in the day. If it holds above it in the day, it could be a good indicator that the worst is over in the short-term. If it breaks, there could be a chance for Symantec trading in bearish territory in the day. However, if SYMC pushes above the pre-crash value of $25.62, it could be a signal that the impact of a no-deal with Broadcom is over. This price action could see Symantec make new highs in the day.
On its part, Broadcom (AVGO) emerged unscathed after the deal was called off. The stock closed the day with gains 1.03%. However, its trend is still bearish in the day-chart. A clear bullish signal for AVGO will be a break above the 5-day high of $294.49. It would be an indicator that bulls have cleared the correction that followed news of SYMC buyout negotiations. It will an interesting trading day for these two stocks today, as they look to find direction post the failed merger deal.