It’s easy to spot a trendline on the weekly chart below of United Natural. Of course, no instrument is obliged to follow a trendline!
This may not be an ideal one but I put it in the scope for the value of experience only. Analysis on the daily charts for this one shows that price tends to fall at earnings releases. So, this is not an Earnings Release play.
Favourable features:
1. Fairly undersold on the RSI
2. Almost touching a clear trendline.
3. Strong visible upward trend overall to price.
Unfavourable features:
1. Price tends to fall on earnings releases.
Price could well fall below the trendline by a few hundred points at the next earnings release in a few days. It may be worth a shot on a demo account, just to see what happens. However, entry point could be a few days after the dust settles from the earnings release. On a demo account it wouldn’t matter much. This could be a good one to ‘experiment’ with on a demo account.
