Stock Pricing Above Fundamentals Ahead of Earnings

Weekly Chart: reports today after the close.

The stock has a short-term topping formation that is nearly completed. The prior runs went speculative but then corrected. The top is similar to the previous peak and the depth of correction is likely to be similar.

The stock has simply moved beyond fundamental levels. This is NOT likely to turn into a long-term top unless there is something substantially wrong with the company and its products. To become an intermediate-term top, it must have lower highs and lower lows. That is not in the chart at this time.

Ideally, the stock needs to shift sideways to build a much stronger support level to sustain a longer-term uptrend. HFTs are in the mix and may gap the stock on earnings news.