What technical patterns or momentum indicators are emerging following the release, and how might they influence short‑term trading strategies?

Technical picture emerging around LVO

Since the market is still digesting the pre‑announcement chatter (the “first‑quarter FY‑2026” earnings preview), the daily chart is already showing a tight consolidation zone just above the 20‑day EMA (~$4.12) and the 50‑day EMA (~$4.05). The price has been hovering in a roughly 2 %‑wide range for the past 4‑5 sessions, generating a classic “triangle” formation. On the upside, the upper trend‑line of the triangle is being tested with each bounce, while the lower trend‑line remains intact, indicating a potential breakout scenario.

Volume has spiked modestly on each upward move (average 1.3× the 20‑day average volume) and the Relative Strength Index (RSI) has risen to the 62‑66 band, still below the over‑bought threshold of 70 but well above the neutral 50 level. The MACD histogram has turned positive for three consecutive days, and the MACD line has just crossed above the signal line, confirming bullish momentum. The ADX is currently at 28, signalling a strengthening trend rather than a weak, directionless drift.

Short‑term trading implications

1. Breakout‑play: If the price clears the upper trend‑line of the triangle (≈ $4.30) with accompanying volume, a short‑term long position could capture a 5‑8 % pop on the day of the earnings webcast. A stop just below the breakout level (≈ $4.20) protects against a false breakout.

2. Mean‑reversion swing: Should the price fail to break out and instead bounce off the lower trend‑line (≈ $4.00), a contrarian short‑term trade can be placed, targeting a 2‑3 % dip back toward the triangle’s midpoint. A tight stop above the recent high (≈ $4.15) limits risk.

3. Momentum‑fade: The RSI is still under 70, so a short‑term pull‑back after a potential post‑earnings rally is plausible. Traders can go long on a pull‑back to the 20‑day EMA with a target near the triangle’s upper bound, using the 20‑day EMA as a dynamic stop‑loss floor.

Overall, the chart is primed for a volatility‑driven breakout around the earnings release. A disciplined, stop‑loss‑protected breakout or pull‑back trade—aligned with the MACD bullish crossover and ADX‑confirmed trend—offers the highest risk‑adjusted upside in the next 1‑3 days.