Citrix Systems, Inc. (CTXS) is set to report earnings after the stock market closes today. Analyst are looking for the ꧃software company to report an earnings declin💟e on a year-over-year basis even as revenues are expected to climb.

When we look at the stock's chart, it is pointing to a major 15% move in the coming week. This earnings event is likely what is needed to kick start that momentum. On a daily chart for Citrix, you can see the stock is stuck in a 澳洲幸运5开奖号码历史查询:descending triangle pattern.

The thing about triangle patterns, even descending ones, is that they are easy to predict. Typically, they are 澳洲幸运5开奖号码历史查询:continuation patterns, meaning that the direction the stock was trading ꦗbefore the pattern formed is the direction in which the stock will break out.

Shares of Citrix climbed strongly in 2018, making it a bullish stock heading into this descending triangle pattern. Therefore, we can expect an upwards breakout, but if shares break below the green 澳洲幸运5开奖号码历史查询:support level at $ꦉ98.50, a sharp downward move can 𒁏be expected.

Since it's a triangle pattern, we know exactly what to expect after a key level is breached. The stock tends to move by the same amount as the height of the pattern. In this case, it's about $16 per share.

By adding the $16 expected move to the possible breakout points, we get clear upside and downside targ🌳ets. At the red line, we can expect to see a 15% rally in the stock in quick fashion. But if shares fall bel🐻ow the green support level, we are in for a sharp 16% decline.

The Bottom Line

Citrix is set to break out of this descending triangle pattern any day now. Earnings today will likely jump start that move. While I expect the mov💦e to be to the upside, the downside is still a possibility. Either way, a quick double-digit move is in store for the stock.