Earnings Play: Guidewire Software
Jason Lubin December 4, 2020 11:25 AM
Today Guidewire's stock price made a new intraday record high.
On Tuesday, after market, Guidewire Software (GWRE) is anticipated to release first quarter LPS of $0.05 compared to an EPS of $0.13 last year on revenue of approximately $164.5 million vs. $157.0 million in the previous year. The company provides software solutions for property and casualty insurers, and its expected move based on front-month options is 7.7%.
Looking at a daily chart, Guidewire's stock price has just made a new intraday record high after breaking out to the upside of an intermediate-term bull flag pattern in mid to late-November. The RSI is in a strong uptrend and currently in overbought territory over 80. The simple moving averages are setup in a bullish manner, as the 20-day SMA is above the 50-day SMA and the 50-day SMA is above the 200-day SMA. Price will likely continue to advance towards the first Fibonacci target of 137.50. Price may find resistance at 137.50, so traders should expect a pull back before a breakout occurs. If price can get over 137.50 then the next Fibonacci target is 145.00. If price get over 145.00 it could potentially keep running higher. If price pulls back then traders should use the 20-day SMA as rough support, because price used the 20-day SMA as rough support in the uptrend preceding the flag. If price breaks away from the 20-day SMA on the downside, then traders should look to 113.50 for a possible bounce off of the breakout level. If price falls below 113.50 it would be a bearish signal that could send price back to 105.50.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.