Earnings Play: Air Products and Chemicals
Jason Lubin November 10, 2020 4:55 PM
Upside breakout from a descending broadening wedge pattern.
On Wednesday, before market, Air Products and Chemicals (APD) is expected to report fourth quarter EPS of $2.17 compared to $2.27 last year on revenue of approximately $2.3 billion, in line with the year before. The company is a global supplier of industrial gases and its expected move based on front-month options is 4.6%. The last time the company reported earnings the stock declined 0.8%.
Looking at a daily chart, on Monday, APD's stock price broke out to the upside of a descending broadening wedge pattern and made a new record high of 327.89. The RSI is currently sitting just below overbought territory at 68. As long as price can stay over the upper trendline of the descending broadening wedge pattern, the short-term bias should remain bullish. If price continues to advance then its first Fibonacci target is 350.00, followed by 370.00. If price slips then trades should look to the upper trendline for support. If price falls below the upper trendline, then price could bounce off of the 284.00 support level. If price fails to be supported at 284.00 then its last line of defense is 270.00. If price falls below 270.00 it would be a bearish signal that could send the stock falling further.
Source: GAIN Capital, TradingView
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.