This healthcare stock just surged and shows little sign of slowing down, chart shows
During earnings season, we can gain value from charts by assessing how stocks react to their reports. We pay particular attention to support and resistance levels, watching for breakouts and breakdowns as technical catalysts. In response to earnings this morning, healthcare stock IQVIA Holdings (IQV) broke through initial resistance from the daily cloud pattern (shown as the shaded area on the chart below) in a bullish medium-term catalyst, reversing a four-month correction. The breakout shows no signs of exhaustion, and near-term momentum is positive. Our medium-term metrics are turning for IQV, suggesting the move higher has staying power. The weekly MACD is on the verge of a buy signal for the first time since November, and the weekly stochastics are not yet in overbought territory. This supports a bullish follow-through for IQV in the coming weeks towards resistance from the Fibonacci retracement near $258. Longer-term, IQV appears to be in a bullish reversal phase following the 2022-2023 bear market cycle. The chart has a rounding bottom formation due to the latest rally, creating a higher low on the chart, suggesting the stock is in the early stages of a cyclical uptrend. Ultimately, we expect the stock to retest the final resistance level, near $285, on the long-term time horizon. Long-term support on the chart is defined by the weekly cloud pattern, rising to around $215 next month. Short-term support lies at the 50- and 200-day moving averages, near $220, which investors may want to use as stop-loss levels to manage risk. —Katie Stockton with Will Tamplin DISCLOSURE: All opinions expressed by CNBC Pro contributors are solely their own and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent companies or their affiliates and may have been previously disseminated by them on television, radio, the internet or other media. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO BE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO PURCHASE ANY SECURITIES OR OTHER FINANCIAL ASSETS. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE CONTENT MAY NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISION, YOU SHOULD CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here to view full disclaimer.
