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Shares of La-Z-Boy (LZB - Get Report) are going through an incredible surge of volatility on Wednesday. After opening lower by almost 7% at $27.91, shares quickly reversed higher and are now up 7.4% at $32.

What's up with all of this volatility?

The company's earnings and conference call are creating a scenario where both longs and shorts had the potential to be paid Wednesday morning. Earnings of 64 cents per share were in-line with expectations, while revenue of $453.8 million missed analysts' expectations.

Given that La-Z-Boy is feeling the trade war pressure, such results weren't so bad. Revenue missed estimates, but only by $3.3 million, or less than 1%. Gross and operating margins improved year-over-year, while comp-store sales were up as well.

Although earnings did decline year-over-year from 66 cents per share, investors are apparently shrugging off the quarter. Does that make La-Z-Boy a buy despite the initial wave of selling?

Trading La-Z-Boy Stock

Daily chart of La-Z-Boy stock.
Daily chart of La-Z-Boy stock.

On the daily chart above, investors can see the massive bullish engulfing candle La-Z-Boy stock is putting in today. Quite literally, it's "engulfing" the prior candle, taking out yesterday's low and closing above today's highs (provided it can close over $31).

That's great news for bulls, but La-Z-Boy stock still has its work cut out for it.

$32 has been a notable level for La-Z-Boy stock, while the 50% retracement for the one-year range rests at $31.81. A close below this area could open up a pullback down to the 20-day and 200-day moving averages between $30.92 and $30.70.

Over $32 suggests a test of the 50-day moving average could occur. If it can clear that too, a test with downtrend resistance (blue line) is possible.

Weekly chart of La-Z-Boy stock.
Weekly chart of La-Z-Boy stock.

Above is a weekly chart of La-Z-Boy stock, highlighting some of these major levels. However, a notable uptrend (blue lines) jumps out immediately. La-Z-Boy's tag of the 200-week moving average is also noteworthy, given that it immediately rallied off this mark.

Further, the stock reclaimed its 50-week moving average, although it's now struggling with its 10-week moving average.

In a way, the charts are conflicted. On the one hand, LZB stock made a powerful reversal off a key weekly moving average and formed a bullish engulfing candle on the daily chart. It also reclaimed several key moving averages on the daily and weekly charts.

That said, it has some short-term resistance overhead as well.

Let's make this the bottom line: The 50-day moving average is resistance until proven otherwise. Over it, and a run to downtrend resistance is possible. Above that and La-Z-Boy stock could breakout. Otherwise, I like LZB stock on a pullback to the $30.60 to $31 area. There it should have several layers of support. Below opens up a test of $29 and potentially Wednesday's low.

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.