Citron Submarines Ambarella

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Ambarella Inc (NASDAQ: AMBA) shares are trading lower by $8.30 at $118.40. Of note, this occured after the stock traded to a new all-time high of $127.12 earlier in the session.

It's possible the reason for the sharp decline was negative commentary from Citron Research, which called the recent rally "ridiculous." The firm placed a $60 target on the issue.

The violent sell off had taken the issue to $117.91 before rebounding slightly.

If the decline continues through the current low, there may be additional support at Wednesday's low ($115.55).