I wish I had done this before Netflix's earnings were released, because I saw a notable bear flag. And it played out. And Intel had a nice head and shoulders forming, and they dropped like a rock too.
Don't trade off of this, but let's see if we can predict the market's reaction to AMD's earnings prior to their release.
I see a long-term broadening pattern (yellow) (I identified this in the past). And I saw the consolidating bull flag (red) at that time. I expected earnings to beat, which would fulfill the flag's destiny, but it looks like we fulfilled it leading into earnings, not because of earnings.
So, from here? It's at the top of the broadening pattern, so I would expect that to provide resistance, and that its next move would be lower. Also, we have some reasonable RSI bearish divergence and the stochastic RSI is high and could be ready to turn down now. Thus, one could suggest that the market will be disappointed. Let's see!
Don't trade off of this, but let's see if we can predict the market's reaction to AMD's earnings prior to their release.
I see a long-term broadening pattern (yellow) (I identified this in the past). And I saw the consolidating bull flag (red) at that time. I expected earnings to beat, which would fulfill the flag's destiny, but it looks like we fulfilled it leading into earnings, not because of earnings.
So, from here? It's at the top of the broadening pattern, so I would expect that to provide resistance, and that its next move would be lower. Also, we have some reasonable RSI bearish divergence and the stochastic RSI is high and could be ready to turn down now. Thus, one could suggest that the market will be disappointed. Let's see!