Unity's Squeeze-Price Inflection oscillation tied to EarningsPremise:
Convergence probably occurred before initial jump to ATH (not drawn)
2nd convergence noticeably begins around the time Momentum Squeeze kicks in for the buildup to Q4 earnings report.
Momentum at breakout was BEARISH, despite P/L changing in the positive direction (earnings much closer to estimate than in Q3)
If this performance holds up, Unity's stock should be competitive against established entities (see background: 700 and ATVI) in the gaming market which looks poised to resume an upward trend.
One Possible Scenario:
The last 2 weeks in March are showing the beginning of a 3rd convergence; will keep updating to see if this pattern holds up.
A new Squeeze indicator along with past experience suggests it will, crucially timed to the earnings release on May 6th.
The sine wave shown here in purple is not meant as a trendline projecting the stock's price level at some point in the future but is simply an extrapolation of past inflection points to identify at what point along the new growth curve the stock will be if and when Momentum breaks decisively in the positive direction.
My conclusion is that Unity will probably continue trading in its current range for some time, possibly even taking another downward turn this month as public sentiment on the stock has been increasingly bearish as its clear it isn't poised to rocket back to 150.
That would be the time to buy and hold, if the enthusiasm for Unity among developers is to be taken seriously, or at the very least, place your May-21 calls.
