Stock of the day: Moody's Corp
27 September 2023
Hello traders, today's focus is on Moody's Corp, which recently exhibited some noteworthy developments on its charts. The most prominent feature was an expansive inverse head and shoulders pattern, distinctly marked in yellow. This pattern was a beacon for buyers in June and July, signaling a strong purchase directive.
However, the tide seemed to turn post-July. The stock has been on a declining trajectory ever since. In a significant development yesterday, the price recoiled below the formation's neckline, highlighted in green. This particular area has been a linchpin for Moody’s, offering steadfast support. Its breach, therefore, becomes a compelling cue for a potential sell.
To compound the bearish sentiment, two critical uptrend lines—one in black and the other in red—were breached. The exact rendition of these lines is inconsequential, as both variants met the same fate. Their breach further solidifies the mounting negative sentiment surrounding Moody’s. In summary, as the stock hovers beneath this pivotal green zone, the prevailing mood leans bearish.