$URBN has broken key trend line support and is set for lower prices. Add in the overwhelming bearish sentiment among retailers and we could go a lot lower than investors think.
After reporting Q3 earnings last night, here are the highlights:
Urban Outfitters (NASDAQ:URBN) slides after a slight miss with its Q3 report.
Comparable retail segment net sales rose 3%...
URBN is incredibly strong fundamentally and is in a very predictable upward trend.
Forming golden cross (when 50 day moving average crosses up and over the 200 day moving average)
What makes a company fundamentally strong?
Taken from various sources including Warren Buffet, here are some things we should look for:
(URBN numbers in parenthesis)
Ranges, Descending Triangles, Triangles and Ascending Triangle are repeatable trading chart patterns.
Ranges and Triangles are consolidation chart patterns that can breakout either direction.
Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the...
Again, as per my forecast of Sept. 3rd, URBN could go long up to resistance area highlithed.
Buy at market open and TP from 47.72 to 48.50.
Stochastic is supporting this idea and SCTR is high enough for a buy.
... for a 2.24 ($224)/contract credit. (High IVR/High IV; Post Earnings Volatility Contraction Play).
Max Profit: $224/contract
Max Loss/Buying Power Effect: $177/contract
Break Evens: 23.27/27.73
Notes: I'm looking to manage this at 25% max profit.
Unfortunately, there isn't much next week earnings wise that renders itself to quality premium selling, with nothing appearing in screens where I'm looking for underlyings that are not only liquid from an options standpoint, but also whose implied volatility is at least in the 70th percentile over the past six months and background implied volatility is greater...