January 30 Chart of the Day - Danaher
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Danaher (DHR) is a leading global life sciences and diagnostics firm that reported earnings before the bell today and is trading up nearly $10 (5%) to roughly $245.
Before today we've never taken a look at their chart so we wanted to see what all the hype was about from a price action technical analysis perspective.
On the monthly chart we can see three straight months of bull candles after making a definitive turn to the upside down near $187 ~ bull 61.8% retracement.
Prior to that price had been making a series of lower lows and lower highs since setting its $333.96 all time high (ATH) back in the summer of 2022.
However, we can see that price is currently hard charging back up towards a change control zone (gray shaded rectangle) roughly between $238 and $248.
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.
It will be interesting to see if the bulls fizzle out here and the bears step back in...
Down on the weekly chart we can further see how price is currently moving in the change control zone with an upcoming decision to make of whether to continue powering up through the zone or fade back to the downside.
If price decides to fall or drift back down we've used Fibonacci to identify potential levels of interest.
From this information, both traders and investors can formulate plans to fit their respective styles.
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.
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