January 11 Chart of the Day - Mettler Toledo
If you've been following our Chart of the Day posts and have benefited from one or more of them we ask that you consider participating our NEW Pay It Forward - Traders Helping Traders program.
Mettler Toledo (MTD) is a multinational manufacturer of scales and analytical instruments. It is the largest provider of weighing instruments for use in laboratory, industrial, and food retailing applications.
The company has been making headlines this past week for revising future guidance downward again due to blah blah blah...
So we wanted to view their chart from a price action technical analysis perspective.
On the monthly chart, we see a few decades of price history (which is good) and quickly notice their share price is a pretty hefty $1,172 and change this morning. (And many think Nvidia per share price is high in the $500s)
Regardless, price will cycle up and cycle down no matter the level. And we see just that. Well off its $1,714.75 all time high (ATH) price made a series of lower highs and lower lows before the bulls stepped in right at the Fibonacci 61.8% retracement area and has since popped back up.
From here we move down to the weekly chart to layer in more price action charting tools and noticed that price has carved out a change control zone roughly between $1,182 and $1,228 as designated by the light gray rectangle.
Change control zones are one of the five price action tools we teach when charting anything. By definition, they are an area that represents where neither the bulls nor bears are in charge. Price can slash though the zone with seemingly reckless abandon, price can respect the top or bottom from outside it or within it. Or, price can trade aimlessly sideways within it. When price breaks away from the zone it can often get drawn back to it like a magnet. And in this case we see all of the above are true.
We can see that price has zig zagged across the zone 22 times during the past 3 years including 4 times in the last 5 months!
This type of price action can prove to be frustrating to "buy and hold" investors but can be a trader's dream! Especially for option traders.
Regardless of your personal style we've identified bi-directional levels of interest from which investors and traders can develop 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
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
Have a chart you'd like to see featured?
Send requests at https://stockchartpros.com/community/contact
Would you like charts like this delivered directly to you every day? ChartPros Trade Room is offering an OPEN HOUSE 7-day free trial at this link.
