This stock had been in a terrific uptrend off its December lows, nearly tripling to its June peak. But it has suffered a correction ostensibly because a minor customer, Samsung, is alleged to be working on becoming a competitor.
Whether this will have an impact on the company on some point or not clearly buyers are out there. A look at a weekly chart shows that two weeks ago the stock saw huge volume support off its bottom and ended the weekly trade unchanged. That’s bullish.
The company reports earnings after the bell on Thursday and this morning is gapping higher on big volume and running back above its still upward sloping 50 MA.
We’d take a position on this early pullback. We’d hold through earnings if the stock breaks above its downward sloping trend line connecting the recent highs. Suggested stop below today’s low.
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Lying with Statistics: the September Jobs Report
12 years ago
This earnings anticipation play simply hasn't worked.
ReplyDeleteThey report after the bell. If you're still long, this is a good spot to exit, on the failure of the morning's gap up highs in as bullish a market as you can have.
The stock may explode higher on earnings but we have no equity in the trade and the chart doesn't inspire confidence.
We're a bit better than break even here, and we move on.