October 2 Chart of the Day - Jack In The Box
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Fast food provider Jack In The Box (JACK) is making headlines this week as it approaches its 52 week low.
But as price action technical analysis chartists should we really be concerned with headlines or levels like that?
Sometimes, but in this case not so much...
On the monthly chart we can see there's still plenty of room to the downside before the next significant support / resistance level.
But down on the weekly timeframe we can see potential actionable levels in both directions. Most notably is a change control zone roughly between $77-82 that price has made several round trips through during the last year.
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.
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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