- Stock hitting resistance at 61.8% retracement from multi-year highs. - CCI shows a bearish divergence. While this bearish divergence also showed up in the middle of 2016 and stock continued to trend up, this time the RSI shows the stock is overbought.
I would expect a pullback to the original trend line, possibly back to 50% retracement before an uptrend is continued, if it does continue.
Do you know that the earnings report is coming out this Wednesday?
myfye13
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Thanks @floydcde, I did! A "slight" miss on earnings could initiate the pullback before moving higher. However, because of the buying pressure, a bad earnings miss / future outlook could move right through the trend line support. We will have to wait and see, but I wouldn't recommend holding any positions before earnings are released.