ESL on the daily chart
is long to neutral at the moment. I expect the stock to try to close the gap seen on the left side of the chart. This is part of a larger throwback underway. If this stock can close the gap then I would consider that it can go further. However, the gap was created when it reported poor earnings
. Those kind of gaps do not simply close because of good technicals. Technicals are the graphical representation of investors perceptions of the fundamentals. Something significant would need to be underway for it to close the gap. I doubt the gap will be closed. When it fails to close the gap and the indicators turn south, consider shorting.
seen. However, it looks like a throwback is in the works (notice indicators)
Forming a large H&S
.Can make the argument that the H&S
is not complete, however, that would be a symmetrical H&S
. A rising H&S
could be in the works too. indicators are somewhat inconclusive.