Shortâterm technical outlook:
HudâŻBayâs (HBM) âstrongâ Q2âŻ2025 earningsâreflected by a high 70âpoint sentiment scoreâshould trigger a classic earningsâdriven price bounce. The stock is likely to retest and possibly break the nearest resistance zone (typically the priorâquarter high around $30â$31). If the price clears that level on elevated volume, the 10âday and 20âday EMAs will likely converge in a bullish âgoldenâcrossâ configuration, pushing the shortâterm 50âday SMA above the 200âday SMA for the first time in several months. Momentum indicators such as the RSI are expected to climb above the 55â60 range (still below overâbought levels), supporting further upside. Watch for a possible âbull flagâ on the 5âminute/15âminute charts: a brief consolidation after the initial spike could create a lowâvolume pullâback that offers a better entry point before a continuation rally.
Volume and tradingâflow implications:
Earnings releases typically bring a sharp, shortâlived surge in volume; the marketâs reaction to HudâŻBayâs beatâandâraise narrative is expected to be a 30â50% increase in average daily volume (ADTV) over the next 2â3 trading days, with the highest spikes on the opening and closing bells. The heightened activity may cause the bidâask spread to widen temporarily, presenting opportunities for scalpers and dayâtraders. If price holds above the breakout level on the dayâ1 close, a continuation of the upâtrend is likely, with the 20âday EMA acting as dynamic support. Conversely, a failure to sustain the breakout could trigger a swift pullâback, testing the 20âday EMA as a new resistance. Actionable takeâaway: consider entering a long position on a pullâback to the 20âday EMA with a stop just below the breakout level; if the stock breaches the priorâquarter high on higherâthanâaverage volume, add to the position. Keep a tight profit target near the next psychological level (~$33) and be prepared for profitâtaking pressure if volume spikes wane after the earnings day.