Autodesk May Be OversoldAutodesk has been advancing since the spring. Now some trend followers may see an opportunity in its latest dip.
The first pattern on today’s chart is the bullish gap on November 6 after the Presidential Election. The software company has pulled back to test and hold its levels from before the surge, which may suggest support is in place.
Prices are also trying to hold their 50-day simple moving average. That may suggest its intermediate-term trend is bullish.
Third, stochastics have dropped to an oversold condition.
Finally, ADSK fell last Wednesday despite beating estimates and nudging guidance higher. While sentiment may have been too optimistic leading into the release, has it now gotten too negative? Traders looking for the pendulum to swing back toward the bulls may look for at least a partial fill of the resulting bearish gap.
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