October 16 Chart of the Day - Western Alliance Bank
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Western Alliance Bank (WAL) tanked over 10% today and now sits directly on its multi-year uptrend line.
With earnings next week, traders are eyeing this critical support as the market awaits a decision... will price bounce or break?
We'll review the chart from a price action perspective to identify potential levels of interest in both directions.
The charts highlight key levels where investors and traders alike will be watching closely.
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 price moves for this chart.
Since May 2023, we've showcased over 625+ Charts of the Day and provide a Free Quick Start Guide to traders with ambitious income goals for our patent-pending NeuroTrading Method™.
Monthly Chart
On the monthly chart, price is falling rapidly in search of its next higher low... but will it find it before setting a lower low?
This type of extreme price action, while not typical, can be considered normal so long as overall structure remains respected.
With plenty of volatility traders have had much to be happy with while investors have been disappointed the past several months.
This kind of movement highlights why a cautious and well-informed approach is essential when evaluating a stock’s short to mid term outlook.
Weekly Chart
The weekly chart highlights the compression pattern that has been forming since 2022, with converging trendlines and declining volatility setting the stage for a potentially explosive move.
Earnings could serve as the catalyst that determines which way this energy finally releases with either a sharp rebound toward the $85 zone or a deeper breakdown toward $60.
This is one of those moments where patience pays, and price will reveal the next major directional leg soon.
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 combined Fibonacci levels with key support/resistance zones and trend analysis to pinpoint potential price levels of interest and future targets.
With precision-focused charts like these, both traders and investors can confidently build and execute their strategies.
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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