Going back twenty years the chart is quite good looking in terms of trendiness having exhibited two periods where the price rallied to new highs then corrected before restarting the trend. The most important rally out of the two occurred between 2003 to 2007 because of the significance of surpassing the previous high. In the move that follows, a price collapse is observed but bulls were able to support it enough to ensure it didn't track downward towards the previous lows setting up a platform to drive the value higher.
The company's valuation hasn't moved much since the end of 2014 where it marked an all time high and subsequently pulled back over the past year. Price has reached the 50 day moving average and seems to be holding on tightly above it for the time being.
When looking for possible support holding up the price currently, my instinct told me to look at the previous high of CHF 240 which lines up to the polarity of the chart. Once this price was overcome, buyers have been able to use it as a point to pick up more stocks as is seen in the long tails left behind in a number of months.
It should also be noted that the neatness of the pullback over the last year and a half has allowed price to be contained within a downward trend channel. This in effect has formed a bull flag that hasn't broken out of the range leaving tons of potential.
Given this company falls within a defensive sector (pharmaceuticals) it's not surprising the bullish prospects currently showing on the chart.
No comments :
Post a Comment