Earnings 8-17 BMO.
Price is traveling in a Rising Wedge that is not valid until the bottom line is broken and it has not been broken as of yet.
I have noted that rising wedges which are bearish in the end, can be especially ominous at earnings.
It is possible for price to break up from a rising wedge and as the 2 upsloping lines converge at the apex, price can get squeezed to the upside. More often price is squeezed to the downside at the apex.
Price can stay above a Rising Wedge or inside a RW for a long time. Many oil stocks have been over rising wedges for over a year.
The issue with this phenomena is that when price comes down and hits the RWs beneath price, there is a large sell off due to the oversupply within the wedge.
No recommendation.
William Arthur Ward
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
Price is traveling in a Rising Wedge that is not valid until the bottom line is broken and it has not been broken as of yet.
I have noted that rising wedges which are bearish in the end, can be especially ominous at earnings.
It is possible for price to break up from a rising wedge and as the 2 upsloping lines converge at the apex, price can get squeezed to the upside. More often price is squeezed to the downside at the apex.
Price can stay above a Rising Wedge or inside a RW for a long time. Many oil stocks have been over rising wedges for over a year.
The issue with this phenomena is that when price comes down and hits the RWs beneath price, there is a large sell off due to the oversupply within the wedge.
No recommendation.
William Arthur Ward
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”