$CREE is under pressure technically and broke under a key uptrend line. Just looking at the chart and you can see that $CREE has been making lower highs and lows. We believe $CREE is going under $40 and will test new 52 week lows. This all comes after $CREE delivered disappointing Q1 earnings and forecast a loss in Q2. Here are the highlights:
CREE has formed a symmetrical triangle pattern going back to the early September low. The price just broke out of the pattern yesterday & is continuing the move today. There was also insider buying by one of the directors yesterday, for those who pay attention to that.
The price target for the pattern breakout is $60.
Bears were in control for a while but not anymore.
Bulls managed to push this baby quite a bit and now it's time to see how powerful those bulls are. Is this stock going to pierce through the 200 ema ?
RSI is overbought but this is normal which such a run, daily RSI looks sweet.
Let's keep an eye on this one. If the bulls manage to break the 200...
We had an entry from last night's list below the low of the day for CREE. Even given the gap day, it followed through nicely and down to our initial target at 35.20. Looking to see foNASDAQ:CREEllow through down to next support level at 34.38 level.
CREE announces earnings on 1/19 after market close, so look to put on any premium selling play before the session ends to take advantage of a post-earnings announcement volatility contraction.
Ordinarily, when a play won't yield at least a 1.00 credit for a 1 standard deviation short strangle or iron condor setup, I just pass it over. It is, after all, earnings...
Next week is literally hopping with potential earnings announcement plays.
I've tried to pick out the ones that (1) have > 70% implied volatility rank; (2) offer greater than a 1.00 credit ($100) for the "classic" one standard deviation short strangle setup; (3) have fairly good liquidity with options prices; and (4) offer weeklies, but there are also a few...