This one has shown up occasionally on watch in the NFTRH+ Charts & Notes segment and today it finally came aboard my portfolio.
It’s a company with a lot of moving parts as it invests and divests to realign its business with a growth strategy in the diagnostic testing area. As you can see, the market did not care too much for its latest earnings report in early November. Undaunted, this is a chart thing and I took a shot with this cashed up company.
Today it is trying to take out a short-term resistance level that coincides with the EMA 20. Support to this trade can be viewed as the SMA 50 at 8 (strict) or noted support around 7.60 (more lenient). Which ‘stop’ I’d use would depend on my market view and portfolio composition at such time. RSI is ticking green and STO has gone above 20, which some chartists think of as a short-term buy signal. Me? Not so much, but there it is.
The weekly chart shows the stock set up as a tax loss seasonal play with an interesting pattern forming at support. If it were to take out the red neckline to the pattern the target is around 12. The main technical risk with these types of situations is that the trends are down. That’s always the burden on the bottom feeder.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.