Stock of the day: Garmin
14 September 2023
In today's stock spotlight, we're revisiting Garmin's persistent sideways trend, which initiated in early May. Currently, the stock's movements are contained within a defined range: the lower horizontal support stands firm at $101, highlighted in yellow, while the upper horizontal resistance hovers around the $108 mark, delineated in orange.
After a bounce off the support at the week's close, Garmin's stock is now in pursuit of the resistance level. The momentum suggests a high likelihood of reaching the orange zone. So, what are the potential market moves going forward? If the stock manages to breach the orange resistance, and subsequently reclaims its position above the black-marked uptrend line, it would present a compelling buy opportunity. Conversely, should we observe bearish candlestick patterns—like a shooting star or bearish engulfing—upon reaching the orange zone, it could indicate a selling point. Such a move would insinuate that Garmin's stock might remain ensnared within this sideways trend for an extended period.