Copa Holdings (CPA) , a Latin American provider of airline passenger and cargo service, is expected to report their latest quarterly earnings numbers after the close of trading Wednesday.
In our May 13 review of CPA, we wrote that "I pay attention to what fundamental analysts are saying but I don't ignore the power of charts and technical indicators. CPA could bounce for a few days or more but the risk is a break of $64 and still further declines. Avoid the long side of CPA for now."
Let's check the flight pattern of the charts again.
In the daily bar chart of CPA, below, we can see that the shares weakened when they broke below $64 in June. Prices recovered in July and August and then have moved sideways in the past three months. CPA has crossed back and forth around the 50-day and the 200-day moving average line.
The daily On-Balance-Volume (OBV) line has moved sideways since early August and appears to be in balance with bulls and bears. The Moving Average Convergence Divergence (MACD) oscillator has weakened since August and tells us that the trend strength is weakening.