Developer and manufacturer of wide bandgap semiconductors, Wolfspeed ( WOLF) reported Q1 2023 earnings and revenue figures Thursday morning. The stock was sharply lower in early trading, poised for a gap down. Let's check the condition of the charts and indicators. 
In this daily bar chart of WOLF, below, we can see that prices gapped higher in August but then prices slowly declined into October. WOLF was trading above the declining 200-day moving average line and below the cresting 50-day moving average line. Prices are set to fall sharply below both moving average lines.
The On-Balance-Volume (OBV) line has been in a decline from April and its lower highs in August and September were a tip-off that the rally lacked sustained strength.
The Moving Average Convergence Divergence (MACD) oscillator moved below the zero line for a sell signal before today's weakness.
In this weekly Japanese candlestick chart of WOLF, below, we can see three upper shadows above and around $120 telling us that traders were rejecting the highs. Prices are above the 40-week moving average line but that condition will quickly change. The weekly OBV line has been firm and the MACD oscillator was above the zero line but narrowing. A mixed picture.
In this daily Point and Figure chart of WOLF, below, we do not have Thursday's market action plotted. A trade at $98.39 or lower should turn this chart bearish.
In this weekly Point and Figure chart of WOLF, below, we can see a potential downside price target in the $80-$79 area.
Bottom line strategy: Traders and investors in WOLF will be scrambling Thursday to adjust to the sharply lower opening. Anyone who is looking to be a buyer of WOLF should be patient and "let the dust settle".
