Important points
Accenture shares may remain on the watch list after surging more than 5% on Thursday after a better-than-expected earnings report from the leading management consultancy that is benefiting from growing demand for its generative AI services. The recent decline in the stock price has provided support for the stock price. In the 200-day moving average, a large Thursday gap creates a doji (a single candlestick pattern with similar opening and closing prices) and generally reflects market participants’ indecision. Investors should monitor the key overhead price levels around $387 and $438 on Accenture’s chart. Watch the $335 area during retracement.
Accenture (ACN) stock could remain on watchlists on Friday after surging more than 5% on Thursday after the management consulting giant’s better-than-expected earnings report and outlook.
The Dublin-based company also raised its quarterly dividend and authorized an additional $4 billion in share buybacks, but its stock price has declined over the past three months as companies look to its generative AI solutions to cut costs. It rose 17%. Reduce costs and increase efficiency.
Below, we discuss the technicals of Accenture’s chart and identify important post-earnings price levels that investors should be aware of.
Bulls defend the 200-day moving average
Accenture stock broke out of an inverse head and shoulders in July, and after retracement to the neckline of the pattern, the stock found the lower bound of support.
Recently, bulls have seen an impulsive rally before falling to the closely watched 200-day moving average (MA), with Thursday’s stock price spread above last week’s peak on above-average volume, and the same (single candlestick) A foot pattern) was formed. In this case, the opening and closing prices are similar, usually reflecting indecision on the part of market participants.
In a win for the bulls, the 50-day moving average is poised to break above the 200-day moving average and form a golden cross, a chart signal that predicts price increases.
Accenture shares rose 5.6% to close at $355.81 on Thursday.
Key overhead levels to be aware of
Looking ahead, investors should note two important overhead levels in Accenture’s chart.
The first is around $387, where the stock could encounter significant resistance near its notable peak in March.
By using the bar pattern, you can predict a target price that will exceed the stock’s all-time high. It uses prior price action to predict possible future movements.
In this case, the stock price tends to rise from late October to early March, and based on this month’s low, the upside price target is expected to be around $438. We chose this previous move because, like the stock’s recent rally, it began with a pullback to its 200-day moving average.
Important retracement levels to watch
Given that the Relative Strength Index (RSI) indicates that the stock is approaching overbought conditions, investors should keep the $335 level in mind during the profit-taking period, and the chart This area above is likely to find support near the trend line connecting the January and September swings. The low price of the 200-day moving average.
Comments, opinions and analyzes expressed on Investopedia are for informational purposes only. Please read our warranty and disclaimer for more information.
As of the date this article was written, the author did not own any of the securities mentioned above.
