Will Tree House break out?


Note: Earning is on 13th Feb, in three days. You may keep that in mind while analyzing the stock.

Consumer Staples sector is one of the strongest sectors today (as of ~10:30 AM EST), as I saw from my real-time sector-rotation analysis.

1) The industry is gaining strength. 

2) THS is undervalued.

3) In the weekly, it is at a place from where it had bounced up earlier.

4) Weekly displayed a bullish Headwind (possible reversal signal) a few weeks ago.

5) There is Memory resistance in weekly that needs to be broken for the stock to confirm the breakout.

6) Daily reversed from Watermark support.

7) Watch for daily to break out of the Memory resistance.

t 1 2020-02-10_10-30-18.jpg  t 2 2020-02-10_10-30-00.jpg  t 3 2020-02-10_10-28-27.jpg 
Why one could exit $THS today with a small profit?

1) It did break out of the daily Memory that was there when I first shared the stock idea.

2) However, it did not go up much and now it is below the Weekly Memory resistance line (which was there when I first shared the stock as well).

3) Its industry is also relatively week.

And THS has earning tomorrow BMO. 

I took a position when I shared the post and that position had a small profit today. Not large enough to hold through the earning, especially because of points 2 and 3 mentioned above.

t 1 2020-02-12_14-14-57.jpg  t 2 2020-02-12_14-16-10.jpg 

Disclaimer: This site is for educational purposes only, explaining the use of CUE systems and techniques. It is not for trade advice. Trading involves risk. You and only you are solely responsible for the outcome of your trades.

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