When earning go by and you didn’t have a position going in, it often pays to play the reaction. Some, like Derald (@1nvestor), do it almost immediately with style and grace; if you haven’t had the chance to watch it in action, follow him and see. Then there are those of us who missed the earnings play, missed the immediate reaction. What’s left for us? Maybe more than you think.
Now, I understand the basics of business and fundamental analysis; but I loathe doing it, so when I find someone I know does a rock solid job…I listen. Joe covers more ground than anyone I know and gets it…again, I listen. Here is the 30min chart with the reaction and the following day circled
I have been watching the chart for a few days and started getting enticed yesterday and today when it hit one of my RSI oversold in a bull range scans. This chart looks to be set up well for a potential move back higher. The daily chart got confirmation today
which was nice to see; next it needs to move and hold over the blue horizontal line (you will see why below). More aggressive traders could have bought today, but the RSI signals require the turn before action. Getting the RSI testing the bull range with CFG below zero Moving to the weekly chart we see why the blue line is so important.
That was a big breakout level before this earnings drop, and this chart still looks pretty bullish even after said drop. Getting back over that level likely sends us to a test of the highs and possibly more. Now, I know it is early in the week, but If we close the week above that line, it would look to me like a nice Breakout back test which is firing a Positive Reversal in the RSI and very possibly the CFG as well. That seems to be a lot lining up on this chart!
I have been working on the best way to capitalize on this have a trade plan worked up for it. What will you do with this information?
Good Luck, it is there for the making!