Don't Ignore This Chart!

Nordson's Selling On Friday Could Be An Opportunity

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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

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
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