In our analysis today, we're looking at Avery Dennison Corporation (AVY) on the NYSE, an industrial sector company. The weekly chart displays a potential bullish reversal in the form of a Symmetrical Triangle pattern that has been developing over the past 58 weeks.
Symmetrical Triangle Pattern:
The Symmetrical Triangle pattern usually indicates indecision. In this scenario, it seems to be acting as a reversal pattern from a previous downward trend
Analysis:
Avery Dennison's previous trend was downward, demonstrated by the diagonal blue resistance line. However, this trend appears to be interrupted by a consolidation phase shaped like a Symmetrical Triangle, suggesting a potential reversal. This triangle pattern has 2 touchpoints on both the upper and lower boundaries.
The 200 EMA is acting as support in this case, and the price is holding above it, indicating a bullish environment. A breakout above the diagonal resistance would signal a potential long setup. Should this breakout occur, we could anticipate a price increase of approximately 29%. Until such a breakout, Avery Dennison remains a candidate for watchlist monitoring.
Conclusion:
Avery Dennison's weekly chart presents a potential bullish reversal scenario, signaled by the Symmetrical Triangle pattern. This pattern, if confirmed by a breakout above the diagonal resistance, could provide an attractive long trading opportunity.
--------------------------------------------------------------------------------------------------------------------- Remember, this analysis should be part of a broader market research and risk management strategy and is not intended as direct trading advice.
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Best regards,
Karim Subhieh
Disclaimer: This analysis is not financial advice and is meant for educational purposes only. Always do your own research and consult with a financial advisor before making any investment decisions.
Symmetrical triangle. I am waiting for a break of its resistance to open long positions.
KarimSubhieh
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@SpartaBTC, seems as if this weeks candle wants to hold above the upper diagonal resistance.
AMIT-RAJAN
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Awesome no words for this great chart! keep doing the good work and keep sharing thanks much
KarimSubhieh
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@AMIT-RAJAN, thank you buddy! Always appreciate your comments.
kosai19
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The candlestick patterns look good....can see accumulation happening with stop-hunting going on at the bottoms...which is healthy and confirms bullish orders. I like the trade.
KarimSubhieh
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@kosai19, thank you for your kind words and I agree the next weeks will be indeed interesting! XLU sector in general looks pretty good!