In this setup I expect price to recover from last week's 14% dip on monday preceeding earnings, I personally plan to day trade this on Monday to catch what I expect will be a pre-earnings rally. If price breaks the 20 MA (yellow line) with a good amount of volume, it would be safe to assume that we would get back to testing the top of this ascending triangle we've been forming @ around 27.75$, especially if the earnings are solid.
I would set a tight stop at around 23.50$, but for longer term swing trade i'd aim for the support @22.25, which is confluent with the neckline of the inverse head & shoulders observable on the 2nd of April. TP@ 25.5$ as there lies the 200 MA which has rejected the price time and time again. I'd be careful of holding this/most stocks as we have had a ridiculously strong dead cat bounce from our lows in march and the overall trend is very bearish.
As we can see here the S&P 500 recovered 36% but has recently been rejected by the 200 MA and is currently forming a bearish divergence on the MACD.
Cheers and goodluck
Feel free to share your thoughts :)
I would set a tight stop at around 23.50$, but for longer term swing trade i'd aim for the support @22.25, which is confluent with the neckline of the inverse head & shoulders observable on the 2nd of April. TP@ 25.5$ as there lies the 200 MA which has rejected the price time and time again. I'd be careful of holding this/most stocks as we have had a ridiculously strong dead cat bounce from our lows in march and the overall trend is very bearish.
Cheers and goodluck
Feel free to share your thoughts :)