Are you getting positioned for Comcast’s (CMCSA) earnings report on Tuesday? Here are some ideas. (July 18, 2014)


I want to look at Comcast ( NASDAQ:CMCSA ) in this video. They announce earnings this coming Tuesday; I really like the way this stock is setting up, it’s forming a kind of a cup here, it would be nice if it was in a volatility squeeze but guess what, it’s not. That’s the last high; this is the current high so we’ve got a potential double top if the stock sells off. What it’s actually looking more like to me is that the stock’s coiling for a move higher. The media stocks have been doing really well lately, they’ve been one of the market leaders.

The thing that I like about Comcast ( NASDAQ:CMCSA ) is it’s not over bought, it’s just trickling upward, pullbacks to the 20-day moving average are bought and moving to a new high. The fact that the stock is at resistance right now is potentially a really good thing, because if they announce earnings that push the stock higher it really doesn’t have to gap much, just basically above 55.50. If it gets above that level you’re probably going to see a lot more buying, so keep that in mind.

Remember earnings are on Tuesday so don’t get all worked up before that, but because of the way this chart is sitting, if you’re interested in this what you may want to consider is buying a small position before earnings, a small position, a starter position, maybe a third of what you might normally take, and then if the stock does happen to sell-off then you can take more. This is in really a multi-year uptrend and even one lousy earnings report is not going to end that trend, it’s just not. The stock could fall 3 or 4 percent and still just come back to the 200-day moving average and that’s, in my view, the worst-case scenario. The better case scenario would be again, a breakout above 55.50, and then you get a nice move to the upside.

Free Chart

Leave a Comment