After dropping more than 20% at the close of the market on 8/29/19 things didn’t look so good for the cosmetic company. Their report wasn’t all bad as listed below, although the market didn’t like it and the stock fell 40% off of its highs.
- Adjusted earnings per share: $2.76, vs. $2.80 expected
- Revenue: $1.67 billion, vs. $1.68 billion expected
- Same-store sales: up 6.2% vs. 6.6% rise expected
I didn’t pay much attention to this “overreaction” until almost a month later on Thursday September 26, 2019 when I noticed the stock moving sideways after finding support at the low of the recent downward move to $244.66 on 9/16/19. Usually that type of behavior in a stock leads to a breakout to the upside. I also noticed a $78.58 “gap” from 8/29/19 – 8/30/19. Gaps in markets have a tendency to fill. My trader senses at this point are on high alert for this potential rally in ULTAWealth Strength IndexAAPL is Extremely Up and trending Up. The only thing I need is for the Zone methodology to set up which it did beautifully. I was able to purchase ULTAWealth Strength IndexAAPL is Extremely Up and trending Up at $242.06 on 9/27/19. I am ultimately looking for this gap to fill and if not continue to trail my stop up passively until I get stopped out.