Stock of the day: Garmin
03 November 2023
The chart for Garmin presents a compelling narrative of a stock that has shifted its course with considerable velocity. October’s trading concluded with what appeared to be a bearish departure from a lateral consolidation pattern encapsulated within blue boundaries. The breach of the $101.5 support level, underscored in yellow, initially signaled a descent.
However, the narrative took a dramatic turn with the release of Garmin's earnings report on November 1st. The financial figures were not just incrementally positive but substantially exceeded market forecasts, with earnings per share and revenue surpassing consensus estimates. This financial outperformance catalyzed a robust bullish gap, effectively invalidating the prior bearish breakout.
The ensuing price action was decisively bullish, with a strong candle surmounting the $108 resistance level, previously the upper boundary of the trading range, now highlighted in orange. This upward breach has redefined the resistance as a potential platform of support.
As the stock positions itself above this pivotal $108 mark, the technical posture has transitionally shifted to bullish. Provided that Garmin sustains this elevation above the newfound support, the stock is signaling a 'buy' from a technical perspective. This alignment of positive earnings and bullish technicals could suggest that Garmin is setting a course for higher valuations in the near term.