M $36.51 – 10-month falling channel suggests further range-bound price action
M made a new-year low at 29.94 (May 23, 2016) before consolidating. The level could hold medium-term since it is near the 61.8% key retracement of the 2009-2015 (5.07/73.61) upswing. Currently, M is ranging below the 200 day moving average (at 37.68) within a 10-month falling channel. If the 37.68/38.48 resistance zone caps the recovery, the stock will likely retest the 34.31 support.
However, a decisive upside break above the 38.48 resistance and then 40.98 (August 16, 2016 prior lower high) would confirm channel breakout and turn the structure bullish. The upside target then will be 45.50 (March 18, 2016 YTD high).
Outlook:
Daily: neutral
Weekly: neutral
Monthly: neutral
M made a new-year low at 29.94 (May 23, 2016) before consolidating. The level could hold medium-term since it is near the 61.8% key retracement of the 2009-2015 (5.07/73.61) upswing. Currently, M is ranging below the 200 day moving average (at 37.68) within a 10-month falling channel. If the 37.68/38.48 resistance zone caps the recovery, the stock will likely retest the 34.31 support.
However, a decisive upside break above the 38.48 resistance and then 40.98 (August 16, 2016 prior lower high) would confirm channel breakout and turn the structure bullish. The upside target then will be 45.50 (March 18, 2016 YTD high).
Outlook:
Daily: neutral
Weekly: neutral
Monthly: neutral