While running the “near top of 90 day decreasing channel” scan over the past week I’ve noticed several of the education companies appearing on the results. The few in focus are [[apol]], [[ceco]], [[coco]], and [[esi]]. The channel breaks that have occurred lately have been validated with increased volume and some may have to do with short covering. However, the gains have been good and a potential catalyst is waiting in the wings.
That’s right, [[apol]] has earnings Monday after the market closes. Keep an eye on this sector to see what happens as it will no doubt impact the whole sector. I’ll be focusing on [[coco]] for the most part as it has the highest short covering pop potential, especially after breaking the 200MA last week. It’s not the most liquid of the stocks in the sector, but if the earnings are good then it provides the best opportunity for a pop.
If the earnings are poor then [[ceco]] will provide the best candidate for a short play. It’s had a 23% and 10% gain the last month and week respectively. New longs were initiated with the technical break this past week and my guess is that their stops are just under the downtrending channel.