Shares of WebMD Health (WBMD) formed a base above one key Fibonacci retracement level, halting a long-term downtrend. The stock is now breaking above a second retracement level in an effort to reverse the previous trend and move higher.

The technical indicators are in support of the breakout and the stock looks like it has some room to run.

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The weekly chart shows the pullback off the high in May, and then shows the stock dropping below its 10-week (50-day) moving average and continuing lower and through its 40-week (200-day) average. It was able to find support at the 62% Fibonacci retracenet level of its 2014 low and this year's high, and has moved back up above its 10-week average to to the 50% retracement level.

Moving average convergence/divergence is attempting to make a bullish crossover for this time frame, and the stochastic oscillator has made a positive line crossover and is moving out of an oversold condition.

Chaikin money flow is still in negative territory, but the Chaikin oscillator, which uses faster averages of the accumulation/distribution lines in its computation, is crossing above its center line.

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The daily chart shows the recent consolidation as either two small horizontal channel patterns or a triangle pattern. But the breakout point at $51.25 is the same for both, and it has been taken out.

Moving average convergence/divergence and the relative strength index are tracking higher and are at or above their center lines, reflecting the improving price momentum. Chaikin money flow has been solidly in positive territory since the middle of last month.

The stock looks ready to run, but there is one caveat -- and that is a pending earnings report. WebMD reports on Nov. 1. When it last reported in August, the stock was basing over the $59.80 level, and many of the same positive technical indications were in place.

Despite better-than-expected results for the second quarter, the company said that monthly traffic had dropped. This news sent the stock lower. Another poor report could take the stock down again, despite the current bullish technical scenario. So patience is a prudent strategy.

A well-received report this time, with a base in place and resistance previously broken, would make WebMD a healthy long candidate.

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