$AVID consolidation and pre-earnings plan.

NASDAQ:AVID   Avid Technology, Inc
Today was the first time in a long time (probably 2 months ago), as reported by @Fredbenz0 , that AVID caught some unusual action on the 35c expiring August 20th. Even though it seems like the OI flipped on these 200 sized blocks, the bullish action is not far away from what this long set-up is about to give us. It seems that a period of consolidation will follow this explosive move after a year long rally that culminated in a strong 2.618 target from this year's first quarter. That same fib is also a massive resistance level set back in 2008 when support broke and led to lower prices. Looking at our indicators, we can see that since March 2020 lows, AVID has held the 8 and 13 EMA strongly. Our Average directional movement is also showing a much weaker trend than before, similar to what happened earlier this year. Based on supply below, it wouldn't surprise me if price led lower towards that 31 and 34 dollar area, where buyers could be found. If that is the case, and if previous support holds, this would make another great add and long anticipating another blowout ER since their previous one. If price find this area before earnings , I will hold off and wait until after earnings . If ER takes us lower, I will be a buyer again.


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