The Nasdaq is up today on the backs of a blockbuster Apple earnings report. One big cap tech stock on the radar for traders today are shares of Cognizant Technology Solutions Corp (NASDAQ: CTSH). The company reports earnings on February 5 after the close and appears positioned to rally up into that event if it can break out of this simple chart pattern. It’s the triangle formation.
Shares of CTSH now have support at $70 and resistance on the upper trendline you see drawn on this chart at $63.50. A close above $64 would confirm a breakout and should trigger a rally. This is the type of pattern that often sets trading algorithms to work. Earnings will be interesting. According to Zacks Investment Research the consensus EPS forecast for the quarter is $1.04.
The stock market is set to chop here though and not soar with the news of the coronavirus unsettling people for now. However, action in the FXI ETF set the stage for the current rally that started Tuesday morning. I gave my updated views in this interview with Jim Goddard.
-Mike
