Leading design software and services company, Autodesk (NASDAQ:ADSK), took a big hit Wednesday trading lower at one point by nearly 15%. The decline comes after the company reported earnings and announced a restructuring plan. Traders should note that ADSK is now trading below its important 50-day moving average, which puts it in a weak technical chart position.
More Downside Ahead
When a stock declines that sharply from a high pivot, it often indicates lower prices in the coming weeks. The next major support level for ADSK stock is around $96. That's where the stock broke out in May 2017. Generally, when a stock retests its breakout level it will be defended when retested.