Don't Ignore This Chart!

Great Fundamental Story, But Will Gap Support Hold?

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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

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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