Don't Ignore This Chart!

California Amplifier (CAMP) Retests Key Support Zone

 | 

A little more than a week ago, CAMP broke trendline resistance after posting better than expected earnings results.  CAMP's top line was $69.2 mil (actual) vs. $68.0 (estimate), while its bottom line also beat Wall Street estimates, $.29 vs. $.25.  The breakout occurred on huge volume and after rising to nearly 22.00, RSI moved into VERY overbought territory above 80 as CAMP needed a breather technically to unwind. Over the past few days that's exactly what we've seen with CAMP's reward to risk from a long entry perspective greatly improving.  The top of gap support resides at 18.75 and the rising 20 day EMA was at 18.69 at last check.  Those two levels along with back test trendline support just above 19.00 should provide an entry zone for those that have been awaiting a pullback.  Take a look at the current technical picture:

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus