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ERIC — gap-reversal

ERIC gap-reversal chart
Event date2026-09-22
Timeframe3m
Market cap$33.8B
Volume vs. average2.0x
Risk Reward+4.0
Tagsbad-news, capitulation

Summary

5.2% gap with steady earnings. Fell after news of a drop in sales and rising component costs. It starts to capitulate in premarket, consolidates a bit on the second bar. Also, the fact that SPY was falling as this started to consolidate on the way up gave me confidence because it wasn't falling with SPY. Take that as an entry with a tight stop. Sell half as it makes the second push, and the rest when it loses momentum.