ETFC Reversal Ahead?
E-Trade released earnings the 17th after the close. The eighteenth saw a gap higher that has not been exceeded even though the S&P is near new highs.
The current ETFC position (today) may be a test of the up-thrust. If the S&P moves higher and ETFC does not follow, it confirms the up-thrust condition and may be an opportunity to go short.
ETFC, Another Zombie
E Trade (ETFC) is another zombie that never recovered from the 2008-2009 melt‑down.
If it had not reverse split 1/10, price would be at just $5/share … nearly a penny stock
At this point, we have congestion in a trading range over the past three or four months.
Going back to the Wyckoff training material (available here), this congestion is a necessary condition for a sustained directional move either up or down.
Earnings release is scheduled for this Wednesday, after hours. So, it’s Thursday that will be of interest.
Note how long price action spent below support at the 45-area. It took over a week to build up enough energy to launch a spring (sort of) attempt to the upside.
ETFC itself, indicates that it’s weak.