After the stock market closed on May 23rd, Nordson Corp (NDSN) reported quarterly earnings results that absolutely blew away Wall Street's consensus estimates. The next morning, as you might expect, NDSN shareholders were rewarded with a huge gap higher and continuing interest throughout the trading day. Volume was the heaviest of the year but NDSN quickly became overbought and was in need of a pullback. That's what we've seen and the selling intensified on Friday as NDSN simply became collateral damage from the Brexit results. It's likely setting up a solid long entry. Take a look at the chart:
Uptrending stocks that see their RSIs dip back to 40 typically represent solid reward to risk candidates. Price support near 80.00 and gap support closer to 76.00 would be two levels to consider for entry with a closing stop beneath 75.00.
Happy trading!
Tom
