Think this could be another great post earnings opportunity. From being in a chop zone prior to earnings and then earnings accelerating price action to put it right into either a supply or demand zone. Obviously sold off right into a demand zone. This one is a little more "patience" involved as there are two demand zones I am seeing right on top of each other and the after hours market went into both of them, with price pre-market currently popped out of the first demand zone.
What I like is that it is in a downward trending channel (so this is against the trend) but I like it because of the potential set up it is presenting. Coming out of the demand zones, I am going to be looking for a retrace back into the top zone to potentially set up a 1 -2 ; (1) - (2) wave count. If the demand zone holds and a higher low is made within the zone on retrace, this can give it a great opportunity to begin a Wave 3 impulse up to power up and out, hopefully breaking the downward trending channel.
So, I'll be watching for a retrace back into demand. Likely we could go straight for the channel resistance and if this happens I'll still wait for a retrace. Confirmation of the set up playing out as planned will be a higher low in the demand zone and then a break above channel resistance. First price target will be $104. This will most likely just be a small risk play as the overall market health isn't looking too great in my opinion.
If zone fails, and having already entered the second zone around the 97.64 price and that zone failing, the next stop down isn't until 94.
What I like is that it is in a downward trending channel (so this is against the trend) but I like it because of the potential set up it is presenting. Coming out of the demand zones, I am going to be looking for a retrace back into the top zone to potentially set up a 1 -2 ; (1) - (2) wave count. If the demand zone holds and a higher low is made within the zone on retrace, this can give it a great opportunity to begin a Wave 3 impulse up to power up and out, hopefully breaking the downward trending channel.
So, I'll be watching for a retrace back into demand. Likely we could go straight for the channel resistance and if this happens I'll still wait for a retrace. Confirmation of the set up playing out as planned will be a higher low in the demand zone and then a break above channel resistance. First price target will be $104. This will most likely just be a small risk play as the overall market health isn't looking too great in my opinion.
If zone fails, and having already entered the second zone around the 97.64 price and that zone failing, the next stop down isn't until 94.
Big key point here is we very well can retrace back into demand, again, need another higher low to keep this play validated.
On a side note, potentially you could already be down with it! We rifled from 99 up to 103 quick for a solid 4 point gain in a matter of minutes!