December 6 Chart of the Day - Elvance Health
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Elvance Health (ELV) has been making headlines recently for a variety of reasons as many other healthcare benefits providers have also been in the headlines.
Selling pressure continued today with share price closing down another 2.75% adding to the 30% drop in price since the first week of September.
By request, we'll take a look at their chart from a price action technical analysis perspective to see if we can identify where price could be heading.
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Monthly Chart
On the monthly chart we can see that after setting its $567.26 all time high (ATH) just a few short months ago price fell dramatically over the next several weeks all the way down under $400 so far this month.
After already falling through many potential support levels price is in search of a definitive bottom.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the relentless selling pressure. The bulls seemingly have disappeared...
On the way down price crossed several potential support levels.
Closing at $382.14 today price may be attempting to reach its next potential support zone in the $360 area.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
