EBF sales growth vs the legal cost drag—any clear support levels to watch?

[BullishBen]

Just saw the latest on Ennis and honestly I’m a bit torn on the price action we’re seeing. Revenue is actually showing some decent life but that EPS hit from the legal items is throwing a massive wrench into the technicals. Ngl, I was looking for a clean breakout above the recent range, but now I’m wondering if this legal noise is just a smoke screen hiding a much stronger underlying business. It feels like the big money might use this dip to sweep liquidity near the previous lows before making a real move back toward the highs.

Looking at the daily chart, I’m trying to figure out if the current order flow suggests we’re going to hold this key support or if it’s about to get ugly. Usually, when sales grow but earnings lag because of one-off legal stuff, the market tends to overreact early on. I’m watching the volume closely to see if we get any aggressive buying on the wicks or if the sellers are just going to hammer it down to the next major demand zone. If the underlying business is as healthy as the sales suggest, this might just be a massive bear trap for anyone not looking at the macro picture.

Do you guys think these legal costs are already priced in, or are we looking at a deeper retracement before we see any real bullish momentum?

 

[EthanCole]

Man, I’ve been staring at the daily for Ennis too. Honestly, I think the market is just doing its usual dance of punishing the EPS headline while ignoring the top line. I’m waiting to see if we can hold that $24 range; if it dips lower, that’s where I’d actually get interested. Don't force a trade yet, though. Let the dust settle.