EA has been in a good uptrend since 2012 and I have often looked at it during this time. However, it is susceptible to deep pullbacks so has never been worth serious consideration.
More recently (since the October 2014 low) a more reliable trend has begun to develop. The daily 50sma is now working well as support. Gaps up also have been corresponding with earnings announcements.
Unfortunately there is resistance ahead. Yesterday's gap up was a bearish reversal bar (a shooting star) which closed below the 2007 high ($61.62). The next major resistance beyond this is the 2005 high of $71.16.
If it were not for these two price obstacles I would consider a small risk buy - but far safer is to wait for the break above $71.16. By then a clearer trend structure should be visible - either as confirmation of a good trend or not. So EA is a stock to reconsider if price breaks the 2005 high.
More recently (since the October 2014 low) a more reliable trend has begun to develop. The daily 50sma is now working well as support. Gaps up also have been corresponding with earnings announcements.
Unfortunately there is resistance ahead. Yesterday's gap up was a bearish reversal bar (a shooting star) which closed below the 2007 high ($61.62). The next major resistance beyond this is the 2005 high of $71.16.
If it were not for these two price obstacles I would consider a small risk buy - but far safer is to wait for the break above $71.16. By then a clearer trend structure should be visible - either as confirmation of a good trend or not. So EA is a stock to reconsider if price breaks the 2005 high.