Coupa Software (COUP) has formed a large "broadening pattern" ahead of its earnings report due out after the close this Cyber Monday. The "broadening pattern" dates back to the 1910's and was believed to be a sign that pool operators were active in a stock by running it up and down to generate activity and attract attention from investors. Chart watchers quickly learned that the pattern could be either a continuation pattern where prices continued the trend that was in force before the pattern or it was a reversal pattern and the stock reversed direction.
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While today is certainly risky, and DIS has earnings coming up next week, I would look at today as an opportunity to put on a position in DIS that is somewhat longer term.
The market was looking for an excuse to sell off and come back to more normal levels, and now we have the pandemic that is the coronavirus.
These are signs that can guide you to great opportunities.
Let's review the charts and indicators.