Earnings Play: Air Products and Chemicals

Upside breakout from a descending broadening wedge pattern.

Uptrend 3

On Wednesday, before market, Air Products and Chemicals (APD) is expected to report fourth quarter EPS of $2.17 compared to $2.27 last year on revenue of approximately $2.3 billion, in line with the year before. The company is a global supplier of industrial gases and its expected move based on front-month options is 4.6%. The last time the company reported earnings the stock declined 0.8%.

Looking at a daily chart, on Monday, APD's stock price broke out to the upside of a descending broadening wedge pattern and made a new record high of 327.89. The RSI is currently sitting just below overbought territory at 68. As long as price can stay over the upper trendline of the descending broadening wedge pattern, the short-term bias should remain bullish. If price continues to advance then its first Fibonacci target is 350.00, followed by 370.00. If price slips then trades should look to the upper trendline for support. If price falls below the upper trendline, then price could bounce off of the 284.00 support level. If price fails to be supported at 284.00 then its last line of defense is 270.00. If price falls below 270.00 it would be a bearish signal that could send the stock falling further.             



Source: GAIN Capital, TradingView

More from Earnings

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.