Given that the share price today hit some important support zones today I thought I'd start a chart thread.
I have been using Ichimoku cloud (IC) analysis as my TA guide on trading as of this year.
Below is the daily Ichimoku chart for ADT with hawkeye volume.
Because the trading history of ADT is pretty short the full cloud formations aren't well formed (you can see the cloud forming to the right hand side of the chart with the top line of the cloud in green). The other three important IC indicators that are used to signal entries and exits are thankfully fully formed and on the hourly chart.
From a pure IC chart perspective, on the daily chart, a long entry was signalled on the 20/6/2018 at 32.5cents and an exit to the long position was signalled when the daily price closed below the Kijun-sen line brown on 24/7/2018 at 48cents (closing price for the day of 44.5cents).
The price action on the daily chart is currently sitting roughly at the mid-point of the cloud which is about as neutral a bias as you can get. A trader trading purely off this chart would be sitting on the sidelines neither long nor short.
The chart is not far away from signalling another long entry however. What would be required would be the Tenkan-sen line (light blue) which is currently sitting at 43.5cents to cross up again through the Kijun-sen line (brown) currently at 49cents.
From a more traditional charting perspective today was interesting, as the previous support level of 40cents was broken during intra-day trading and what's more the price dipped as low as 38.5cents which coincidently is currently the bottom of the cloud on the daily IC chart and also more importantly a level that the Kijun-sen line maintained for a long time while the previous test of the 40cent support was happening. So from this perspective I see the 38.5cent level as good buying level but also a danger that might signal lower prices if it should break. The next danger level on the chart below 38.5cents is at 32.5cents but I can't see the price making it that low at this stage.
I tested the market today with some actual money and found that there were obliging sellers at 40.5cents just above the support level of 40cents, which is an indication that someone might want the share price lower.
I'll give some less esoteric (more human) commentary on the chart later tonight if I get time. Esh
P.S. You'll notice also from the Hawkeye volume that since the price broke down into the mid-40cent level, trading has been on relatively low volume. I read this as early profit taking has been largely done.
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