Stock of the day: Garmin
22 May 2023
Let's start this week with a nice update on the situation regarding Garmin. Previously, we analyzed this instrument at the beginning of May when the price was breaking out of the symmetric triangle to the upside. Here's how we concluded the previous piece:
"This is definitely the first proper signal to buy. However, it would be nice to receive some confirmation. Today's candle, with its higher high and higher low, closing above the triangle, will provide us with the proper confirmation of the bullish sentiment. As of now, the buy signal on Garmin looks really promising, and the first target is the orange horizontal resistance that played a key role in the first half of 2022."
So, how did the situation change? Firstly, the bullish breakout was confirmed, and the price continued to climb higher. Furthermore, Garmin surpassed the horizontal resistance at $101.5 (yellow), and after the breakout, the price formed a small rectangle (blue). This rectangle is promising for the buyers as it indicates a flat correction, suggesting that buyers have full control of the situation. The current outlook for Garmin remains positive, and the buy signal from the beginning of the month is still valid.