March 18 Chart of the Day - Celanese
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
Celanese Corporation (CE), a chemical and specialty materials company, manufactures and sells engineered polymers worldwide.
Consistent profitable investing and/or trading requires a structured, rules-based approach to price action analysis. Proven processes, disciplined risk-reward management, and precise execution create the foundation for long-term success.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next moves for the stock.
We have featured over 450+ Charts of the Day since May 2023 and teach Price Action Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart, we can see that after reaching its all-time high of $176.50 in 2021, price experienced a sharp decline, followed by a retest of the highs. However, it then dropped even more dramatically, ultimately breaking its multi-year uptrend.
With little to no prior price history at all-time highs, the price often enters what we call a "discovery phase" to establish new market structure.
In this case, the price appeared to move rapidly through the discovery phase before quickly reversing, retracing back toward familiar levels while bypassing previous support and resistance zones.
Recently, it tested a long-term support level around the $50 area and is now attempting to reclaim it.
Volatility is a common price action behavior, though it tends to be unpopular among investors.
Weekly Chart
On the weekly chart, we can see that after reaching its all-time high, price quickly pulled back to previous structure before attempting another bullish run, only to face strong rejection around the $170 level.
Since then, the price has steadily declined, breaking through multiple potential support levels and is now in search of a clear bottom.
Why then when a company makes ATHs can price quickly drop back down?
For a variety of reasons including maybe this was a case of traders and investors taking some profits off the table. Or not wanting to miss a second chance at it.
Regardless, it’s evident that selling pressure has been relentless for most of the past year.
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.
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