Ciena Corp. (CIEN) is set to to report earnings on Thursday. Let's visit with the communication equipment company's charts to see how traders might be positioned.
In the daily bar chart of CIEN, below, we can see that the shares made a relatively shallow decline in February and March. Prices have doubled from the March nadir. CIEN is trading above the rising 50-day moving average line after tests in July and August. The 200-day moving average line has a bullish slope.
The On-Balance-Volume (OBV) line shows a rise from December to the beginning of August but then the line fades a bit. A weaker OBV line tells us that sellers are more aggressive and I do not find that to be a positive ahead of an earnings release.
The Moving Average Convergence Divergence (MACD) oscillator has been pointed down since early August and is now close to crossing below the zero line. A break of the zero line is a sell signal.