Stock of the day: Moody's
17 July 2023
Moody's Corporation (MCO) closed at its highest levels for the year last Friday, following a notable upward trend. A clear buy signal emerged in early June when the price crossed the neckline (green) of an inverse head and shoulders pattern, characterized by a bullish reversal. This pattern, denoted by a yellow color, indicates a probable upswing.
From the start of June to the end of the last week, the stock experienced a slight correction, remaining relatively flat. However, this stagnation is suggestive of a potential upward climb, which indeed unfolded towards the end of last week when the price broke through the key resistance level at $348, marked in orange. As long as the stock price maintains a position above this orange support, the market sentiment remains overwhelmingly positive.
If the price drops back below the orange support level, the market sentiment would turn neutral. A further decrease, breaking both the green support and the black uptrend line, would definitively signal a selling opportunity. Currently, however, the probability of such a decrease seems minimal.