Stock of the Day: Moody’s Corporation
01 December 2025
In today’s stock of the day, let’s take a look at Moody’s Corporation, which is currently locked inside a rectangle pattern that has been shaping the chart since September. What makes this setup especially interesting is that Moody’s has a strong history of forming and respecting rectangle patterns. Since April, we’ve already seen three clear rectangles: the first one triggered a breakout to the upside, the second one produced a breakout to the downside, and now the third one is in progress. This instrument simply loves trading ranges, and history shows that once consolidation ends, volatility usually expands fast.
The current structure is tight, clean, and technically neutral — classic sideways movement where neither buyers nor sellers want to commit before a decisive signal. The more the range narrows, the stronger the breakout can be once it finally appears. Traders should expect increased energy building inside this rectangle, especially since previous consolidations led to strong directional moves. It’s a textbook waiting game: the market is preparing, but has not shown its hand yet.
So how to approach this situation? The trading plan is extremely straightforward. A breakout above the upper boundary of the rectangle would activate a buy signal and open the road for a new bullish leg. On the other hand, a breakdown below the lower boundary would trigger a sell signal and suggest that the pattern resolves to the downside. Until either scenario materializes, sentiment remains neutral and patience is required — but the setup is definitely one to monitor closely.