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.
