February 14 Chart of the Day - IQVIA Holdings
Precision oriented price action technical analysis by far provides the best edges and most setups for traders across the markets so that's what we use for the basis of our reviews.
IQVIA Holdings (IQV) is a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry and is making headlines today after posting better than expected earnings.
We've never heard of them before so we wanted to review their chart from a price action technical analysis perspective.
We always start with a higher time frame view such as the monthly chart. First we identify all the support and resistance (S/R) levels that we see. Then we often add other price action drawings however in this case we're going to keep it simple and just stick with S/R.
Earlier in our trading career we had a mentor that really emphasized starting a chart review like this. In fact, during a nearly year long "Boot Camp" Price Action training program we were required to trade only using level to level S/R for about the first three months. What we found out was that if you can successfully trade only using S/R it seems to easier after that.
Keep reading and you'll see what we mean...
Moving down to the weekly chart we've added additional price action tools, specifically trend and Fibonacci.
Now we can get a better sense of how price has been cycling and essentially trading sideways within a range roughly between 170 - 240 for about the last two years.
But the earnings beat was a catalyst to move price back to the top of the range and potentially break out of it. On the other hand, if history repeats itself price could get rejected once again at this level.
You know what they say about a resistance level... it can hold until it doesn't!
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.
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