CRCT, Drop after earning may be a buy opportunity ! Positive earning report and negative reaction of market? Is it a buy chance? Lets follow.
Pre-Market price is near the golden ratio 0.618 Retracement ( around 27 USD) while earning report was positive and we had revenue growth. It may really be a buy opportunity.
Technically, CRCT seems to has completed a 5 leg up going wave and has made wave A and B of an ABC form of correction so far. We have a strong Potential reversal zone (PRZ) at around 27 USD composed of 0.618 retracement of the last wave cycle and 1.414 extension of wave B. Moreover, as shown on the chart, we had a price action to this support price when it was up.
As I publish this idea pre-market price is 29.5 just 2 dollars above the strong support. It can be a good trade opening a long position in the case of touching the support and showing the strong bullish reaction.
We set our stop loss objectively in the case of opening position. Market may not follow our expectations.!
