BASE - Inverted Head & Shoulders
For the past 3 weeks, BASE has seen higher volume (accumulation) leading it to break out of an inverted Head & Shoulders Formation (bullish) last week. With earning expected on 6th June, it is likey that it's earnings could be positive. However, whether the recent up move has already factored in a positive earning (and then "sell on news") remains to be seen.
If it started to sell off on "news" after earnings is announced, it could present good entry opportunity to long if it remains supported above the 50% retracement of it's recent upswing AB.
However, if it gaps up after earnings, then we need wait and see if it begins to consolidate before looking for signals to long (bullish patterns, divergence, fib support, gap close etc).
This inverted H&S basing formation had formed over 12 months+ and looks to be credible for longer term upside, not to mention it is also now above it's 200 day MA (although it could be risky to long in the short term due to earning announcement risks). Let's see what happens after earnings and whether opportunity to long present itself after.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
If it started to sell off on "news" after earnings is announced, it could present good entry opportunity to long if it remains supported above the 50% retracement of it's recent upswing AB.
However, if it gaps up after earnings, then we need wait and see if it begins to consolidate before looking for signals to long (bullish patterns, divergence, fib support, gap close etc).
This inverted H&S basing formation had formed over 12 months+ and looks to be credible for longer term upside, not to mention it is also now above it's 200 day MA (although it could be risky to long in the short term due to earning announcement risks). Let's see what happens after earnings and whether opportunity to long present itself after.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
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