05/03/2022
The number of stocks trading under their 200-day simple moving average is astonishing.
As of yesterday’s close, it was a mere 173…
(Source: gfycat.com)
See… even “Wee Bey” from The Wire is shocked.
But this is a good way to look at what sectors and industries are showing strength despite the short selling offense taking place in the market…
One that I like is everyone’s favorite thing to pay for: Insurance!
Anthem, Inc. (ANTM) is on the chart today:
We’ve got a daily look here on ANTM and options players are loving this right now…
Support and resistance levels are reasonably clear as I’ll talk about here in a moment.
For investors, you’ve got a nice dividend with a buck twenty-eight each quarter…
But where’s it headed?
Let’s take a stab at it.
I’m keeping this chart simple and sticking with the fundamentals here.
Blocking and tackling always comes first… at least, that’s what Coach Jenkins always yelled at us back in the day…
First off, I’ve drawn the proverbial “line in the sand” in the near term using a neon green line at roughly ~$477.00.
Looking further left, you can see the Flat Top Breakout of the Ascending Triangle.
This is essentially the ABCD pattern that I look for on most charts and the Trickshot team is used to seeing this.
But the breakout occurred when the share price launched through the resistance level mentioned above.
Now, ANTM needs to hold this area for traders to see further upside, which is why I’ve drawn in the Ghost Bars…
Below it in the highlighted circle is a longer term trendline marking another level of support and, over on the Volume Profile, you can see there’s plenty of support.
For now, however, I’d watch for the price to return to the previous resistance level to see if it maintains as new support…
You can see there’s a gap in the Volume Profile where I’ve drawn a white dotted arrow.
See the gap in the price action?
Being that this is a downside gap, it has a good chance of being filled sooner than later…
The lower chart indicators (OBV, RSI, and MACD) seem to be confirming this trend.
Patience is required. Confirmation, a must.
Keep moving,
(Disclosure: I hold no position in ANTM.)
This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
