January 15 Chart of the Day - Universal Display Corporation
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
Universal Display Corporation (OLED) is a developer and manufacturer of organic light emitting diode (OLED) technologies and materials, and it is a provider of services to the display and lighting industries.
The company is in the news today as a prominent analyst has started accumulating their stock, as well as others, amid the recent pullback.
We'll take a closer look at the chart from a price action technical analysis perspective.
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Monthly Chart
On the monthly chart we can see that after setting its $262.77 all time high (ATH) back during the height of the pandemic price fell dramatically and seemingly set a bottom just below $90 before making a roaring comeback up to $240.
But since then price has pulled back again below $150.
This type of price action can be really tough on the buy and hold investors but at the same time can be a traders haven!
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the extreme price volatility in both directions.
Trading around $149 earlier today price may take a breather in this price area before deciding to either move back to the upside or continue with the selling pressure. While this is not the last chance for the bulls to step in it could turn out to be a very good technical level.
Through all of this price movement price established a change control zone roughly between $158 to $163.
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.
Price has crossed this zone over 35 times during the last 7 years and could be heading for its next trip across it!
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
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.
