An oversold stock in an overbought market seems like it could be trouble. It's ahead of earnings in just a few days and the last few EPS reports show a fairly wide trading range which reveals more risk than average. UPL can move 2 points on earnings or roughly 10%.
Volume died down a bit after the drop from the 29+ level down under $25. UPL also held where it reported earnings back 6 months ago as it dropped down to a lower channel line.
I'll be waiting until earnings come out, but wanted to show you all this chart just so you knew about it so we would be ready once earnings came out.
Tim 8:25AM EST Friday, 7/25/2014 24.73 last in pre-market
Comments
A-shot
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The volume bar is green though, why?
A-shot
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Sorry, see my answer
5thdisciple
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Are you going into this trade now?
AYosof
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I noticed the bars are red green and black what are the black ones about?
A-shot
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But you put Long on it even though it is oversold in overbought? Would you initiate a position if the ER is positive at this moment?
artuncio7
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Great set up and like u said..only concern earnings on 7/31/14