Keeping it Simple with Price Action and Technical Analysis
6-Jul-2024
The chart and trend of NEU looks very interesting.
I am analysing here the price action along with my planned targets objectively using Point & Figure charts on a 0.2 box size and daily timeframe. This is ~ 1% of current price, and very good for a medium to long term analysis.
My analysis and deductions from the chart presented below;
* The price is in a clear uptrend and now has been taking rest ( aka - consolidating) after making ~ 100% upmove since Dec'23.
* If we see the chart, that HUGE upmove, came after a long consolidation after it broke the multi-year resistance since 2005 in Mar'23.
* Now lets look at the numbers from these moved :
(A) The stock was at around 12 in 2005, and took 18 years to hit that price again in Mar'23.
(B) The stock then took just 9 months from Mar-Dec'23 to move up the same distance. (C) Now the price is consolidating, and if it maintains this strength and momentum, then we should see a similar upmove, hence my price target around 36-38. Condition being, that on a weekly / monthly close basis, it should stay above that immediate GREEN support zone below it.
** Disclaimer : I own this stock and my analysis may be biased and even incorrect. DYOR and dont trade without a Stop-Loss.
(20min delay)