L234

Is this beat up flooring company setting up for a bigger move up

Long
NYSE:AFI   Armstrong Flooring, Inc
I did a analysis on AFI a while back. I still hold a position and still remain extremely bullish .

I thought about posting this a few days ago but I wanted to do it after earnings . As I think that in itself is a good bullish indicator here.

If you look at the previous 2 earnings for Armstrong they resulted in a 30% decline or sell off. This earnings although it didn’t beat expectations it wasn’t bad and it did the exact opposite of previous earnings . It actually had quite a big move up today.

Now here’s why I think it will continue. After the last sell off it finally held the 50 day moving average and just traded sideways there for a bit. To me that’s a sign of more buyers stepping up to the plate and the 50ma has been acting as a great area of support.

Ig you just zoom out on the stock or look at it on a weekly scale you can see although volatile it’s trend has consistently been up even after allot of the recent sell offs we seen AFI made a higher low.

We also had a red 9 on to sequential yesterday which can be a good reversal indicator for the short term.

I do think AFI will break that $7 too soon. Most likely before next earnings .


Best of luck on your trades!