Stock of the day: Moody’s

In today’s stock of the day, we have a fresh buy signal on Moody’s created at the end of the previous week and confirmed yesterday.

As you can see on the chart, there is a beautiful Inverse Head and Shoulders pattern (green) which covers the vast majority of the 2022 trading. The bottom of the iH&S formation is also a false breakout (blue) below the lows from the second half of 2020 (orange). False breakouts and iH&S are very strong formations and when present together, their effect can be magnified.

Last week, the price managed to break the neckline of the iH&S pattern (red), which theoretically activates it. Moody’s has currently a full, long-term buy signal with a potential target on the highs from the end of 2021 at approximately 406 USD. The chances of getting there are quite high.