Earnings Play: Guidewire Software

Today Guidewire's stock price made a new intraday record high.

New Highs 1

On Tuesday, after market, Guidewire Software (GWRE) is anticipated to release first quarter LPS of $0.05 compared to an EPS of $0.13 last year on revenue of approximately $164.5 million vs. $157.0 million in the previous year. The company provides software solutions for property and casualty insurers, and its expected move based on front-month options is 7.7%. 

Looking at a daily chart, Guidewire's stock price has just made a new intraday record high after breaking out to the upside of an intermediate-term bull flag pattern in mid to late-November. The RSI is in a strong uptrend and currently in overbought territory over 80. The simple moving averages are setup in a bullish manner, as the 20-day SMA is above the 50-day SMA and the 50-day SMA is above the 200-day SMA. Price will likely continue to advance towards the first Fibonacci target of 137.50. Price may find resistance at 137.50, so traders should expect a pull back before a breakout occurs. If price can get over 137.50 then the next Fibonacci target is 145.00. If price get over 145.00 it could potentially keep running higher. If price pulls back then traders should use the 20-day SMA as rough support, because price used the 20-day SMA as rough support in the uptrend preceding the flag. If price breaks away from the 20-day SMA on the downside, then traders should look to 113.50 for a possible bounce off of the breakout level. If price falls below 113.50 it would be a bearish signal that could send price back to 105.50.       



Source: GAIN Capital, TradingView

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.