ONE-TWENTY TWO - A collection of personal articles on financial markets including analysis you can use


Sep
22

Cognizant Technology Fills Earnings Gap

written by Dr. Duru
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This is a quick follow-up on a piece I wrote about Cognizant Technology (CTSH) called “Planning to Accumulate Cognizant Technology Even As It Fights To Hold 2-Year Lows.” Since then, CTSH has rallied to fill its earnings gap from May.


Cognizant Technology finally fills its earnings gap from May

Cognizant Technology finally fills its earnings gap from May


Source: FreeStockCharts.com

I sold my position after the August earnings gap up thinking I would get another chance to reload at lower prices. CTSH remained below stiff resistance at the 200-day moving average (DMA), and I figured on a fade back to the 50DMA. Instead, CTSH consolidated for a month and broke out again starting on September 7th. This breakout filled the May post-earnings gap a week later. CTSH now looks like it will consolidate again around current levels. The stock is a definite buy on the dips going forward as it continues to build a stronger and stronger base of support for launching into the next bullish phase for CTSH.

Be careful out there!

Full disclosure: no positions

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