This chart and analysis are not financial advice. Do your own research before trading or investing.
01. Cup and Handle Pattern:
The white line represents a pattern called the "cup and handle," lasting about 130 market days.
This pattern is considered strong and reliable in technical analysis.
02. Volatility Contraction Pattern Setup:
The yellow markings indicate a setup called the "volatility contraction pattern."
This setup aligns well with the three fundamental aspects of the pattern.
03. Grey Dashed Line as Pivot Point:
The grey dashed line signifies a potential pivot point.
To the left of this line, there's a noted area of overhead supply, highlighted in red and spanning 22 market days.
Despite this, the Volatility Contraction Pattern has extended for 147 market days, suggesting reduced overhead selling.
Daily stock volumes are decreasing without significant price movements.
Importantly, there's a 5.85 dividend from the company, making the estimated price from the pivot point $79.90 (calculated as $74 + $5.85).
This leads to an assumption that there might not be much overhead supply in that area when reached.
In simpler terms, the analysis suggests a strong and reliable pattern in the stock, a setup indicating reduced market volatility, and the potential for less selling pressure at a certain price level due to factors like dividends. Remember, this is just one perspective, and investing always involves some level of risk.
01. Cup and Handle Pattern:
The white line represents a pattern called the "cup and handle," lasting about 130 market days.
This pattern is considered strong and reliable in technical analysis.
02. Volatility Contraction Pattern Setup:
The yellow markings indicate a setup called the "volatility contraction pattern."
This setup aligns well with the three fundamental aspects of the pattern.
03. Grey Dashed Line as Pivot Point:
The grey dashed line signifies a potential pivot point.
To the left of this line, there's a noted area of overhead supply, highlighted in red and spanning 22 market days.
Despite this, the Volatility Contraction Pattern has extended for 147 market days, suggesting reduced overhead selling.
Daily stock volumes are decreasing without significant price movements.
Importantly, there's a 5.85 dividend from the company, making the estimated price from the pivot point $79.90 (calculated as $74 + $5.85).
This leads to an assumption that there might not be much overhead supply in that area when reached.
In simpler terms, the analysis suggests a strong and reliable pattern in the stock, a setup indicating reduced market volatility, and the potential for less selling pressure at a certain price level due to factors like dividends. Remember, this is just one perspective, and investing always involves some level of risk.