Earnings Indicators: 4 Technical Patterns to Watch Monday

Remember, these are short-term patterns; they can be useful for making quick-hit trades, but long-term investors shouldn't base any buys or sells on these signals alone.

   

We’re in the thick of earnings season, and we wanted to see what the Trending123 Pattern Scan powered by Recognia had to say about the short-term prospects of a few notable stocks reporting on Monday, April 29. Take a look to see if the short-term technical analysis matches your expectations.

PartnerRE (NYSE:PRE): Short-Term Bearish

PRE’s chart shows a short-term bearish “hanging man” pattern. In simple terms, the Hanging Man is a bearish signal indicating that the prior uptrend is about to end and may reverse to a downtrend or move sideways. This pattern is an indication of a financial instrument’s short-term outlook.

PRE 2 26 131 300x180 Earnings Indicators: 4 Technical Patterns to Watch Monday

<br />Click to chart to enlarge; chart courtesy of Recognia

Community Health Systems (NYSE:CYH): Short-Term Bullish

CYH’s chart shows a short-term opportunity in a bullish “engulfing line.” The stock could see a reversal of fortune as the pattern indicates a possible reversal of the current downtrend to a new uptrend. Again, this pattern is an indication of a financial instrument’s short-term outlook.

CYH 4 26 13 300x191 Earnings Indicators: 4 Technical Patterns to Watch Monday

<br /> Click chart to enlarge; chart courtesy of Recognia

Atlas Pipeline Partners (NYSE:APL): Short-Term Bearish

APL’s chart suggests there is a near-term bearish opportunity, thanks to its bearish “inside bar” pattern, which indicates the balance between buyers and sellers, recently dominated by the bulls, is evening out. Lower prices may be 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.

APL 4 26 13 300x176 Earnings Indicators: 4 Technical Patterns to Watch Monday

<br />Click chart to enlarge; chart courtesy of Recognia

DataLink (NASDAQ:DTLK): Short-Term Bullish

Conversely, DTLK’s chart is also showing an inside bar, but of the bullish variety. An Inside Bar (Bullish) indicates a possible reversal of the current downtrend to a new uptrend. This pattern is an indication of a financial instrument’s short-term outlook. Two-bar patterns reflect changes in investor psychology that have a very short-term influence on future prices – typically less than 10 bars. Often the immediate effect is trend exhaustion and potentially, a reversal. For traders looking for clear entry and exit points, these patterns serve well. They are normally not suitable as signals for long-term investors unless viewed as monthly bars.

DTLK 4 16 13 300x185 Earnings Indicators: 4 Technical Patterns to Watch Monday

<br />Click  chart to enlarge; chart courtesy of Recognia

What do you expect from these names after their April 29 earnings reports?

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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