February 20 Chart of the Day - Vizio
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.
Vizio (VZIO) is all over the headlines today after retail giant Walmart (WMT) confirmed it would acquire the smart TV maker for $3.2B or $11.50 per share.
Not surprisingly Vizio shares are trading up about 15% today - north of $11.
We wanted to review their chart from a price action technical analysis perspective. The first thing we noticed on the monthly chart is that there isn't that much historical information on this chart. Often times price can go through a discovery phase for several years after a company's initial public offering (IPO).
In this case we can see that since setting its $28.80 all time high (ATH) just about 3 years ago price has been making a series of lower highs and lower lows. Bottoming out at $4.82 about 6 months ago price has only risen slightly until today's announcement.
Perhaps that's why Walmart offered what they did...
Down on the weekly chart we can see today's bounce to the upside but unless the acquisition is called off one could anticipate price to settle right around the announced $11.50 area.
If for some reason the deal falls through we could look for price to potentially fall to the levels identified by Fibonacci retracements or even further.
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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