WOW couldn't pick a harder one. LOL
There are both good and bad signs for direction on this one.
Fundamentally company looks good. Management is doing a good job, institutional has a strong position, insiders are buying. BUT it has a large short position @ 12.5%. Anything over 10% shows negative investor sentiment. Normally a strong earning beat is needed to change sentiment for price direction to remain positive.
Technically the chart and indicators are pretty much in limbo. It has followed both short & mid term chart patterns well. Hitting each pattern target. The problem is there is no short term pattern at this time and the mid term is indicating a possible negative heads & shoulders pattern developing. Also on the negative there is a fairly large gap below. short term. I think by the old "buy the earning" tribe.
So basically there is no outright signal for direction until after investor get a chance to evaluate those earning. Fundamentally the short interest shows concern. but it is defiantly a good company & management team. Technically it show signs of accumulation in the support indicators. But the dame gap up makes it hard to see a move north before that gap is filled. Plus the mid term heads & shoulders causes some concern.
If your asking my opinion it would be "do nothing" BUY or SELL until after earning tomorrow and see how investors react. But act fast if there is a strong move in either direction right away. What I would like to see is, with this one, is a slow reaction so I could make a logical trade next week. Rather then having to jump in or out quick "as suggested" on a knee jerk reaction.
I always keep in mind there are many good companies with bad stocks and many bad companies with good stocks. This one seems to be a good company with an average stock. Hence the conflicting signals. I'm feeling with the large institutional positions @ 60% the main investors are longs and the technicals less important over all.
