January 7 Chart of the Day - Comerica
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
Comerica Incorporated (CMA) provides various financial products and services. The company operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments and is scheduled to report earnings on January 22 before market open.
Today, we'll take a deeper look from a price action technical analysis perspective to identify potential price levels of interest in both directions.
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Monthly Chart
On the monthly chart we can see that after setting its $102.66 all time high (ATH) back in 2017 price fell dramatically all the way down under $30.
Since then, price roared back to the upside just below previous ATHs before once again falling dramatically.
Historically, price has carved out a change control zone (long gray rectangle) roughly between $54 to $60.
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.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the relentless and wild price swings both up and down.
On the way down price consistently made lower highs and lower lows until it didn't...
Trading around $62.50 earlier today price may be waiting for the upcoming earnings announcement as a catalyst before attempting to break back to the upside or possibly making another visit down towards the change control zone where it has made an astonishing 36 trips across it during the last 25 years or so.
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.
