Don't Ignore This Chart!

Great Fundamental Story, But Will Gap Support Hold?

Tom Bowley

Tom Bowley

Chief Market Strategist, EarningsBeats.com

Last month, Ctrip.com (CTRP) posted both revenues and EPS well above Wall Street consensus estimates and it came on the heels of an earlier announcement where CTRP was involved in a share swap that resulted in Baidu (BIDU) owning a 25% ownership interest in the Chinese online travel company.  Volatility can be wild in CTRP, so only aggressive traders should consider the stock.  The 17% drop in four weeks since earnings were released is a perfect illustration of the volatility.  The weakness, however, could be presenting an opportunity as CTRP has seen its earnings gap almost entirely filled.  Technically, that can be a very interesting entry level. 

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More