Let’s get back to looking at some earnings charts as the earnings season is still far from over. That’s right, most investors have the idea that the earnings season really closes down in the end of July or early August, but there’s a second wave of announcements coming over the next few weeks, meaning a whole lot of opportunities.
Today’s three big stock charts looks at the technicals for Salesforce.com, Inc. (NYSE:CRM), HP Inc (NYSE:HPQ) and Dollar Tree, Inc. (NASDAQ:DLTR). All three companies posted earnings over the last few days (or this morning) and what their charts are telling us.
Salesforce.com, Inc. (CRM)
Saleforce posted numbers that were better than the Street’s expectations, breaking CRM stock above a critical chart resistance level. The shares are now showing signs that a volatility rally is ready to move the stock higher as it remains in a long-term bull market.
- Salesforce shares have moved above chart resistance that formed at $92 when the stock put in a top at this price in June. The break above this price is drawing some volume buying to the name, which will help move shares higher.
- Momentum for CRM shares is building according to the MACD readings that are breaking higher into positive territory. This is confirming the intermediate-term outlook of the 50-day trend.
- Expect to see Salesforce shares to run into a pause when they reach $19.40 as the stock will wrestle with chart resistance and an overbought reading from its RSI at that point. Any dips from there would represent short-term buying opportunities in CRM.
HP Inc (HPQ)
Unlike Salesforce.com, HPQ disappointed investors with its latest earnings results. The results were actually in-line with expectations from a numbers perspective, it was just that the market had already priced positive results into the stock in the days heading into the report with a “buy the news rally”.
This means that we’re likely to see some volatility over the next few days as some of these traders “sell the news.”
- Shares of HPQ have been trading in a wide range between $19.40 and $18.40 and look to remain within the range as the push and pull trading of the earnings rumor mill is hardly generating enough volume for a breakout.
- The stock is surging higher today, which will allow it to move with more volatility. For the time being, HPQ shares remain within their Bollinger Bands, indicating that we should not see the stock break higher or lower on volatility trading.
- From a bullish perspective, HPQ stock is seeing an improved intermediate-term outlook as the stock has its 50-day moving average trading just below current prices at $18.40. The trendline is rising, which indicates higher prices over the next 4-6 weeks.
Dollar Tree, Inc. (DLTR)
Is brick and mortar retail back? Some of the results from the retailers out there in the “real world” are starting to show that consumers are back in the aisles. DLTR provided a healthy earnings report this morning as well as forward-looking guidance for its 2018 fiscal year.
The Dollar Tree report has shares trading 8% higher … is there more to come?
- Today’s pop higher is a great move for DLTR as the stock had been in a technical transition after consolidating at $75. The stock should now be considered with an intermediate-term bullish outlook as the 50-day moving average is now beginning to trend higher.
- Despite the strength, Dollar Tree traders should hold off on buying into the one-day move given the fact that the stock is now in technically overbought territory. This indicates that we will see profit-taking over the next week or so as traders cash in some profits.
- Firm support for DLTR stock is in place at $77.25 as both the 200-day moving average for the stock and chart support join at this price. The double-barreled support identifies an attractive “buy the dip” price for Dollar Tree.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
