November 4 Chart of the Day - AstraZeneca
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
AstraZeneca (AZN) has been making headlines recently as the company said its experimental weight loss pill was well tolerated by patients in an early-stage clinical trial.
This seemingly has spurned a noticeable amount of option activity for the stock so we wanted to review their charts from a price action technical analysis perspective.
One can never know if larger than normal option activity (think institutional size positions /aka/ "whale") is for a speculative move or for a hedge against an existing position but nonetheless the implied volatility for specific strike prices are at heightened levels, for now.
We have featured over 300 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 price recently reached un-chartered territory after creating new $87.68 all time highs (ATH) a few months ago.
With little to no previous price history at ATHs price can go through what we like to call a "discovery phase" to create new structure.
In this scenario, price by-passed the discovery phase (for now) and quickly faded back down towards previous and familiar price structure. All very normal.
As traders we're limited to estimating potential upside targets using only price action tools Trend and Fibonacci as shared for free in our Trading All Time Highs webinar replay.
Weekly Chart
On the weekly chart we can see where price set its ATH before quickly dropping back down the past few weeks.
Regardless, it's clear to see that for more than a decade price has been making a series of higher highs and higher lows /aka/ an uptrend.
And surely you know the old saying: the trend is your friend!
Until it isn't.
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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