Last week it was reported that the leading credit services company Equifax (NYSE:EFX) faced a severe data breach. The breach could impact 143 million U.S. consumers. The news sent the stock price tumbling.
Before the breach, the stock was trading at around $140 a share. Today, it's trading at $111.22.
Traders and investors should note that when a stock declines in this type of pattern, the selling can be violent and long. Many traders might remember when Target (NYSE:TGT) reported its data breach: the selling was sharp and the stock has still not recovered from the decline. EFX will have some near-term support around the $100 level, but the stronger chart support will be around $92.50. This chart support level was tested in February 2016 and should be solid support when retested for the EFX share price.
Add a Comment