Here's Our Advice for Trading Accenture Following New Forecast
Shares of business consulting giant Accenture (ACN) rose on Thursday after a revised revenue forecast for 2024 amid an AI boost.
Let's check out the charts and indicators.
In this daily bar chart of ACN below, I can see that prices have rallied above the 50-day moving average line but have pulled back intraday. ACN remains below the declining 200-day moving average line. The trading volume has been more active since late March and may be a combination of selling by weak longs and new buying by investors with deep pockets. The daily On-Balance-Volume (OBV) has been weak since the beginning of March and tells me that traders are more aggressive as sellers than they are as buyers. The Moving Average Convergence Divergence (MACD) oscillator has improved since April but remains below the zero line.
In this weekly Japanese candlestick chart of ACN below, I still see a bearish setup. Prices are trading below the 40-week moving average line. The three most recent weekly candles have small real bodies and could be part of a bottom-reversal pattern. A strong white (bullish) candle is needed to complete the reversal. The weekly OBV line has been weak since February and could be foreshadowing further weakness in the weeks ahead. The MACD oscillator is still below the zero line.
In this daily Point and Figure chart of ACN below, I can see today's rally and an upside price target in the $391 area.
In this weekly Point and Figure chart of ACN below, I can see that the software is projecting the same price target as the daily chart above: $391.
Bottom line strategy: I don't know where ACN will close today (or on any other day) but it is trading off the early high and this suggests we are seeing some profit taking from short-term traders. I do not expect ACN to make a "V" bottom here but rather the odds favor a bottoming process.
Stay tuned.
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