EarningsBeats.com Digest for September 14, 2020
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Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.
Join EarningsBeats.com Chief Market Strategist Tom Bowley for our "Max Pain Webinar"
When: Tuesday, September 15, 4:30pm – 5:30pm
About the Event: Our Max Pain webinars are held every month, usually a few days before monthly options expire (3rd Friday of every month). These webinars are designed to help us determine short-term market direction based upon net call/put premium. We will also look into individual stocks that could be significantly impacted the week of or the week following options expiration.
Determining Big Price Support After A Huge Earnings Report
CoStar Group, Inc. (CSGP) delivered very strong results in July, easily beating both revenue and EPS estimates and Wall Street reacted quite positively as the stock gapped from 716.74 to 939.00. That day, CSGP traded as low as 785.43 before rallying to finish the day at 829.14. Over the course of the next 6-7 weeks, CSGP rallied back above 875 before fading in September. On Friday, CSGP closed at 785.65, the first of two key levels of price
support:
The selling recently has been on relatively light volume and the AD line remains in a solid uptrend in 2020. If support at 785 is lost, next up would be previous price resistance (now support) near 750. Momentum clearly has been an issue of late, but CSGP is just now returning to key centerline support. Relative strength has been solid with CSGP actually at a 52-week relative high after its quarterly earnings were reported. I wouldn't be
surprised at all to see another leg higher with relative strength surging again. A close back above the now-declining 20 day EMA would be the first sign that strength is returning.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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