Academy Sports And Outdoors Gaps Up On 'Record-Breaking' Revenue

Academy Sports and Outdoors Inc. ASO shares traded higher Tuesday after the company released stellar earnings results. 

For the months of February through April, the company posted an adjusted income of $182.5 million, or adjusted earnings of $1.89, versus the prior year’s adjusted income of $400,000, or adjusted earnings of 1 cent per share.

CEO Ken Hicks said that both the quarter’s sales and profits were “record-breaking.”

Academy Sports And Outdoors Daily Chart Analysis

• Shares have been steadily climbing the past few months in an upwards trending channel and saw a gap up Tuesday.
• The stock is trading above the 50-day moving average (green), indicating that sentiment in the stock is bullish.
• The 50-day moving average may hold as an area of support, and sentiment may stay bullish as the price continues to trade above this level. 

Key Academy Sports And Outdoors Levels To Watch

• The stock has continued to hold a strong uptrend throughout the last few months.
• The bottom of the channel had previously acted as support, while the top of the channel acted as resistance. On Tuesday, the stock gapped up near the resistance level, and a break above could send the stock higher.
• The Relative Strength Index (RSI) saw a large move up. This means that the stock became overbought Tuesday. The stock entering overbought territory means there are many buyers at the moment and not many sellers.

What’s Next For Academy Sports And Outdoors?

Bullish technical traders would like to see the stock continue to trade in the channel. As long as the stock continues to make higher lows and stays within the channel, the bulls will hold control.

Bearish technical traders would like to see the stock break below the bottom of the channel. If the stock is able to cross below the bottom of the channel and the moving average, then it may be signaling the stock is changing trends.