Stock of the day: Vivendi
04 July 2023
Today's spotlight is on Vivendi, a French multinational media conglomerate that operates in various sectors of the media industry, including music, television, film, video games, telecommunications, tickets, and video hosting services. Currently, Vivendi presents a promising buy setup. This proposition stems from the Inverse Head and Shoulders pattern, delineated in blue on the chart, signaling a potential bullish reversal.
The buy signal from this formation necessitates a breakout of the neckline, and we've seen this occurrence last week. The neckline, marked in red, is a crucial factor in this setup. The reliability of the Inverse Head and Shoulders pattern as a bullish signal is not just theoretical; in Vivendi's case, it's also historical. In October 2022, the company formed a similar pattern, highlighted in yellow on the chart, which led to a significant buying opportunity post the neckline breakout.
The immediate target for the current upswing is set at the orange resistance level. However, the rally might not stop there. Given the promising market scenario, it is plausible that in the long run, the price could soar above the orange resistance zone.