Avery Dennison Corporation WCA - Symmetrical Triangle Company: Avery Dennison Corporation
Ticker: AVY
Exchange: NYSE
Sector: Industrials
Introduction:
In our analysis today, we're looking at Avery Dennison Corporation (AVY) on the NYSE, an industrial sector company. The weekly chart displays a potential bullish reversal in the form of a Symmetrical Triangle pattern that has been developing over the past 58 weeks.
Symmetrical Triangle Pattern:
The Symmetrical Triangle pattern usually indicates indecision. In this scenario, it seems to be acting as a reversal pattern from a previous downward trend
Analysis:
Avery Dennison's previous trend was downward, demonstrated by the diagonal blue resistance line. However, this trend appears to be interrupted by a consolidation phase shaped like a Symmetrical Triangle, suggesting a potential reversal. This triangle pattern has 2 touchpoints on both the upper and lower boundaries.
The 200 EMA is acting as support in this case, and the price is holding above it, indicating a bullish environment. A breakout above the diagonal resistance would signal a potential long setup. Should this breakout occur, we could anticipate a price increase of approximately 29%. Until such a breakout, Avery Dennison remains a candidate for watchlist monitoring.
Conclusion:
Avery Dennison's weekly chart presents a potential bullish reversal scenario, signaled by the Symmetrical Triangle pattern. This pattern, if confirmed by a breakout above the diagonal resistance, could provide an attractive long trading opportunity.
---------------------------------------------------------------------------------------------------------------------
Remember, this analysis should be part of a broader market research and risk management strategy and is not intended as direct trading advice.
If you found this analysis beneficial, please consider liking, sharing, and following for more insights. Best of luck with your trading!
Best regards,
Karim Subhieh
Disclaimer: This analysis is not financial advice and is meant for educational purposes only. Always do your own research and consult with a financial advisor before making any investment decisions.
