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

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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