Earnings season is a crucial time for investors to gather valuable insights from stock charts by observing how stocks respond to their earnings reports. It is essential to pay close attention to support and resistance levels, as well as monitor breakouts and breakdowns as potential technical catalysts for future price movements.
One recent example that caught the attention of analysts is health care services stock IQVIA Holdings (IQV). Following its earnings report, IQV experienced a breakout above initial resistance indicated by the daily cloud model. This breakout signal a bullish intermediate-term catalyst, marking a significant reversal from a four-month corrective phase.
The breakout displayed no signs of upside exhaustion, with short-term momentum indicating a positive outlook. Additionally, intermediate-term gauges are showing a turning point for IQV, hinting at a sustainable upward trend. The weekly MACD is on the verge of a buy signal for the first time in months, while the weekly stochastics have not reached overbought levels yet.
From a long-term perspective, IQV appears to be in a bullish turnaround phase following a bear market cycle in 2022-2023. The chart pattern resembles a rounded bottom, suggesting that the stock is entering the early stages of a cyclical bull trend. Analysts anticipate IQV to retest final resistance near $285 with a long-term time horizon.
Long-term support for IQV is indicated by the weekly cloud model, rising to approximately $215 in the upcoming month. Short-term support levels lie at the 50- and 200-day moving averages around $220, which investors can use as a stop-loss threshold to effectively manage risk in their positions.
Katie Stockton, along with Will Tamplin, shared their analysis on IQV, highlighting the potential for continued upside momentum in the coming weeks. It is important to note that all opinions expressed by CNBC Pro contributors are solely their own and do not reflect the views of CNBC, NBC UNIVERSAL, or their affiliates. Investors should always consult with their financial or investment advisor before making any significant decisions.
Analyzing stock charts during earnings season can provide valuable insights into potential future price movements. By recognizing breakouts, monitoring support and resistance levels, and assessing momentum indicators, investors can make more informed decisions about their investment strategies. It is crucial to consider both short-term and long-term perspectives when evaluating stock charts to develop a comprehensive understanding of market trends and potential opportunities.