Fast Stock made 30 percent move from January 15, 2016 to its recent high on March 21, 2016. Among the last 4 earnings, fast stock beat the earnings 3 times. Currently stock is on the weekly tight flag pattern and holding on the long time weekly support line.
On the daily Chart, after stock a big move from $35 to $50 stock started to pull back. Stock just closed above the previous support line. Stock is now the lower band of the Bollinger band. Lower band of the Bollinger is also a buy opportunity for the day trader. Fast stock is currently holding above the major moving averages, including 50 day moving average, 100 day simple moving average and 200 day simple moving average and still far away from major moving averages. Chart shows stock is trying to get it support in 50 day simple moving average with its long time support line.
Fast weekly chart is ready for big move up in the short period of time. Chart shows that stock made a 3 weekly flag pattern and now is holding above the long time support line. Stock made 30 percent move in only 3 month and now are forming weekly bull flag pattern. This kind of flag pattern if broke out successfully, make a big move up within one week and 2 weeks. Since stock has the upcoming earning, investors and stock traders are watching how chart pattern is forming for the stock.
An earnings beat of the stock can initiate the break out of the stock and will eventually lead to a big gain from the break out. Fast stock had a big volume at its first stage uptrend. This is also positive for the stock. At the pullback stocks volume should dry up to get a classical bull flag pattern. On the pullback volume was not dyed up completely. However, volume is below 50 day moving average. This is good for the stock. Today stock was trading at $47 and was on the sideways
Stock earnings report could be a big factor for the stock. Either stock earning beats could break out the stock upside or failed to reach consensus could break down the stock to the down side.