Don't Ignore This Chart!

This Inverse Head & Shoulders Pattern Is Breaking Out On Earnings

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Chart Industries (GTLS) was mired in a downtrend for two years, shedding 90% of its market value, but things have changed and the upward momentum is quickly building for this equipment maker for the energy sector.  They blew top and bottom line estimates out of the water and shareholders are finally being rewarded.  Take a look at today's candle:


This inverse head & shoulders pattern initially measures to 31.50-32.00 but considering this was once a $130 stock, it's easy to assume that GTLS has much further upside available.  The daily MACD looks very strong right now and that suggests that the next 20 day EMA test would represent a solid reward to risk entry.  The neckline should also provide price support as well.

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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