Stock Chart FSTR

Stock Chart FSTR

L.B. Foster Company (Public, NASDAQ:FSTR)

FSTR's chart is showing a fairly common rectangle base that can also be interpreted as a W bottom or double bottom. While some may say that double bottom's only exist at the end of a downtrend, I prefer to look at what the price action is telling me, and disregard what the pattern is labeled. FSTR's base may be setting up for a reversal of the 1-2-3 correction it began last December, or it could easily be setting up as a continuation base. I prefer to look at this for an upside breakout, because it it close to doing so, and the longer term trend supports it. It looks like it attempted a breakout a couple of weeks ago, but it also has traded a pretty tight range after that refusing to give up too much ground. However, I just realized that FSTR reports earnings on the 24th of April, so that may be the catalyst for which direction it takes. I will not trade this at this point due to upcoming earnings, but I decided to post it anyways, because some readers may actually be holding it already, or some of you may have safer ways of playing it with option strategies.


Good Trading,


Joey

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