Earnings Play: RPM International

RPM has broken out to the upside of a bullish flag pattern.

Charts (5)

On Wednesday, before market, RPM International (RPM) is anticipated to report first quarter EPS of $1.20 compared to $0.95 a year ago on revenue of approximately $1.5 billion, in line with last year. The company manufactures a variety of paints, coatings, and adhesives, and its expected move based on front-month options is 5.9%. The last time the company reported earnings the stock increased 1.5%.

Looking at a daily chart, RPM's stock price has just broken out to the upside of a bullish flag pattern on Monday, October 5th. The MACD line crossed above the signal line on October 1st, a bullish signal. Price will likely advance to retest the all-time high of 87.80. If price can get above 87.80, it would clear a path for price to grind up to 97.90, which is the measured move of the pattern that happens to be around the third Fibonacci target. If price gets up to 97.90, traders should keep an eye out for another flag or pennant to form. Other the other hand, if price cannot hold above the upper trendline then traders should look to the 78.70 support level for a possible bounce. If price cannot hold above the 78.70 support level then it would be a bearish signal that could send prices back down to 71.20.        

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.