EarningsBeats.com Digest for October 2, 2020
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Dear Digest Subscriber,
Join EarningsBeats.com Chief Market Strategist Tom Bowley tomorrow morning, Saturday, October 3, at 11 am EST for an educational webinar:
"Creating a User Defined Index"
This event is open to all EarningsBeats.com community members and you will be sent room instructions tomorrow morning prior to the start of the event. Hope to see you there!
A Visual of What a Significant Bottom Looks Like
RingCentral, Inc. (RNG) is a stock on our Strong Earnings ChartList (SECL), which is one of our flagship products at EarningsBeats.com. Companies that (1) beat their latest quarterly estimates as to both revenues and EPS, (2) are liquid, trading at least 200,000 shares a day on average, and (3) look solid technically, are adding to this ChartList. We provide annotations on all of these charts, mostly to highlight key price support. In the case
of RNG, a key support line was marked as follows:
The horizontal line stretching across the entire chart at roughly 250 should be viewed as MAJOR price support as RNG has traded at or below that level at least 5-10 times. The last time resulted in a huge intraday breach on very heavy volume. But a reversing hammer was printed. This illustrates how market makers accumulate shares for institutional clients. The heavy volume no doubt was caused by broken price support triggering stop
losses. Market makers gladly bought everyone's shares and the reversal occurred. In my opinion, the difference between a breakdown and a false breakdown (and bottom) is THE CLOSE. Do market makers support the stock in the afternoon and buy to avoid a technical breakdown that will trigger more selling?
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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