CREE is a name I have traded often over the years with some good results, especially around earnings season. This time the chart wasn’t giving me much of a good read for direction or volatility, so I passed, but now that earnings news is out the technicals turned – literally overnight!
The big surge on Wednesday (price and volume) are evident on the chart. You can see the price moving right back into the gap and above the early January high. Further, option buying has been on fire lately. CREE is poised to take on an all-time high (82) from back in 2010. First up is filling the gap at 74.32, which is a nice 12% from here.
Take a look at the chart, and you’ll see that this is not yet overbought and can continue to rise.
