Earnings Indicators: 3 Technical Patterns to Watch Today

There is a definite bias to the technical indicators for stocks reporting earnings Wednesday after the close.

   

As earnings season continues and a new month beings, we checked in with the Trending123 Pattern Scan powered by Recognia to get the short-term prospects of some noteworthy stocks reporting after the bell Wednesday, May 1. Does the short-term technical analysis match your expectations?

Archer Daniels Midland (ADM): Short-Term Bearish

ADM 5 1 13 300x167 Earnings Indicators: 3 Technical Patterns to Watch Today

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Ag stock Archer Daniels Midland’s (NYE:ADM) chart shows a short-term Hanging Man pattern that could take the stock lower to around the $32.50 in the next two to six weeks.

The Hanging Man tells us the price may have reached the top of the recent uptrend, showing it has been susceptible to selling pressure. The Hanging Man appears during an uptrend, displaying a long lower shadow with a small real body at the top of the range. The price may have reached a top and due for a reversal to the downside.Will earnings be the catalyst?

Avis Budget Group (CAR): Short-Term Bearish

CAR 5 1 13 300x166 Earnings Indicators: 3 Technical Patterns to Watch Today

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The chart for rental car agency Avis Budge Group (NYSE:CAR) indicates a near-term pullback could occur to the $27 range in the next several weeks, thanks to an bearish Inside Bar pattern.

This pattern tells us the balance between buyers and sellers, recently dominated by the bulls, is evening out. We may see lower prices ahead. An Inside Bar develops during a strong uptrend, when the trading range is completely within the boundaries of the prior bar. This suggests the balance between buyers and sellers is becoming more evenly balanced i.e. a weakening in power for the bulls and increasing in power for the bears.

Facebook (FB): Short-Term Bearish

FB 5 1 13 300x183 Earnings Indicators: 3 Technical Patterns to Watch Today

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While some of the indicators and oscillators are short-term bullish for Facebook (NASDAQ:FB), its bearish Inside Bar pattern is calling for it to drop in the short term, with a downside target of the low $26.00 range. The social media giant will have to break through support at $27. 39 first, however.

 

InvestorPlace advisor John Lansing tracks the charts all day and offers expert technical analysis in his day trading, options and trading services: Power Trading at the OpenParabolic Options and Trending123.  Trending123 members receive access to the Trending123 Pattern Scan powered by Recognia free as part of their membership. For more information on which service is for you click here.


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