Fan Yang
All posts from Fan Yang
Fan Yang in Fan Yang,

Autodesk (ADSK) approaches key resistance ahead of earnings

Autodesk (ADSK) shares have been rallying ahead of its Q2 earnings report due Thursday. However, there is a critical resistance just ahead, as we can see in the weekly chart below.

ADSK Weekly Chart 

(click to enlarge)

Consolidation resistance:
- Looking at the weekly chart, we can see that ADSK has been in a long-term bullish trend, but has been consolidating over the past couple of years. 
- The wide range is roughly between 41.60-42.50 and 65-65.80. 
- Even though the prevailing trend is bullish, we should anticipate at least some short-term resistance around 65.00. 
- A 10% pullback could be within the scenario of a subsequent bullish breakout. A return to 60.00 should not be a surprise, especially if Q2 earnings underwhelm. 

Earnings: Whether we will see a breakout or a retreat from resistance will most likely come down to whether earnings will surprise the market.

- "In the last quarter, the company delivered in-line earnings. The company has delivered an average positive earnings surprise of 23.22% in the trailing four quarters." (

- According to "Analysts are estimating that the company will post a loss compared to a profit last year. Revenue is projected to decline year-over-year.

Wall Street is expecting the design software and services company to report a loss of 13 cents per share on revenue of $512.1 million.

During the same quarter last year, the San Rafael, CA-based company said it had adjusted earnings of 19 cents per diluted share on revenue of $609.5 million." (