Stock of the day: Garmin
04 May 2023
In general, yesterday's FED decision and the accompanying statement were not favorable for bulls and stockholders. As a result, the outcome on the indices was negative and most of them collapsed. However, there were a few gems that shined bright despite the wave of red on the charts, with Garmin being one of them - our hero for today.
Yesterday, Garmin published its earnings report. The EPS was lower than expected (1.02 vs 1.04), but the revenue beat the expectations significantly (1.15B vs 1.07B). How did all this change the situation on the chart? Quite significantly, to be honest! The report was published before the session and gave buyers the momentum to create a nice bullish candle during the day. Technically, this was extremely important as with the upswing, buyers managed to break the upper line of the triangle and escape this formation to the upside.
This is definitely the first proper signal to buy. It would be nice to receive some confirmation, though. Today's candle with its higher high and higher low, closing above the triangle, will provide us with proper confirmation of the bullish sentiment. As of now, the buy signal on Garmin looks really promising, and the first target is the orange horizontal resistance that played a key role in the first half of 2022.