EarningsBeats Digest

Published: Mon, 08/30/21

EarningsBeats.com Digest for August 30, 2021

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Did This Earnings-Related Gap Lower Mark A Bottom?

I wrote a ChartWatchers article over the weekend, suggesting that a software stock may have seen an exhaustion gap to mark a major bottom after the stock had spiraled downwards for months. To view this article, CLICK HERE. This morning, I want to focus on another software stock that didn't set a new low with its earnings-related gap lower, but it did essentially print a double bottom. Here's the chart:

The most encouraging parts here for TDOC is that there were (1) consistent buying for two days after earnings and (2) the support from the earlier May low held. Keep a close eye on that 132 support in the days and weeks to come. So long as TDOC can hold this support level, I believe it has an excellent chance to begin trending higher again. Watch for the signals of a new uptrend, which include a bullish PPO centerline crossover and then successful tests of a rising 20-day EMA.

Happy Trading!

Tom Bowley
Chief Market Strategist

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