Earnings play: Cintas

Downside breakout from a short-term bearish channel.

Downtrend 2

On Tuesday, before market, Cintas (CTAS), a designer and manufacturer of corporate uniforms, reported second quarter EPS of $2.62, up from $2.27 last year on revenue of $1.8 billion, in line with the year before.

Technically speaking, on a daily chart, Cintas' stock price broke out to the downside of a short-term bearish channel after price gapped down at the open. The RSI is below 40 and pointing downward. The simple moving averages (SMAs) are arranged in a bullish manner, with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA. If the 20-day SMA crosses to the downside of the 50-day SMA, it would be a bearish signal. Price will likely break below 335.00 and continue falling towards 316.00. If price finds support at 316.00, it could consolidate and attempt to bounce. However, if price fails to find support at 316.00, it could slip further. On the other hand, if price gets above the lower trendline of the pattern then it could attempt to reach for the record high of approximately 369.00. If price can manage to get over 369.00, then its first Fibonacci target would be 385.00.    


Source: GAIN Capital, TradingView

Build your confidence risk free

More from Earnings

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.