More than 500 companies in the Russell 3000 index are scheduled to report earnings this week, setting up a potential trade around the stocks with bullish chart patterns and strong fundamentals.
"When a security is acting a certain way just before quarterly results are released, there is a good chance, a very good chance, that the stock in question will inflect in a positive or negative manner," Carter Worth, head of technical analysis at Cornerstone Macro, highlighted in a recent note to clients.
"Simply stated, often there are 'tells' when news is pending, indicating how a stock will react when the facts are known," he added.
In the case of quarterly earnings, investors often look at trading patterns along with the collective judgment of Wall Street analysts in an effort to predict the direction a stock could be headed.
So which are some of the names with the technical and fundamental analysis backing them ahead of earnings?