WDAY - Episodic Pivot - 2020-08-28

WDAY Cup with Handle + Earnings Gap Trade:

• Pattern Formation: Formed a Cup with Handle and had a successful breakout right before earnings.
• Earnings Reaction: Stock gapped up 11%, signaling initial strength.
• Expectation: When both Cup with Handle and Earnings Gap align, it typically suggests a move to higher ground.
• Reality: The stock quickly faded, dropped to the 50-day moving average, and even sliced through the handle area.

Lesson Learned: This is a perfect example of why it's crucial to follow the rules and respect stop losses without hesitation.