Earnings Play: Nielsen Holdings
Jason Lubin October 8, 2020 11:05 AM
Look for resistance at the upper trendline of the descending broadening wedge pattern.
On Friday, Nielsen Holdings (NLSN) is anticipated to report third quarter EPS of $0.39 compared to $0.51 a year ago on revenue of approximately $1.5 billion vs. $1.6 billion last year. Nielsen operates as a marketing services company and its current analyst consensus rating is 9 buys, 6 holds and 3 sells, according to Bloomberg.
Looking at a daily chart, Nielsen's stock price appears to be falling within a descending broadening wedge pattern that began to form in early-August. The RSI also peaked in early-August and has been falling since. The simple moving averages (SMA) are positioned in a bearish manner with the 20-day SMA below the 50-day SMA and the 50-day SMA below the 200-day SMA. Price will likely continue to advance to the upper trendline of the pattern where it will likely find resistance and stop rising. If price is stopped at the upper trendline it will probably sell off to the 13.30 support level. If price breaks out below 13.30, then is could drop all the way down to 11.80. On the other hand, if price breaks out above the upper trendline traders should look to 15.90 as the first target. If price can get above 15.90, it could potentially reach for the pattern peak of 16.70.
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.