TMO to 560 by end of 2020?TMO has moved into slightly shorter cycle in November, which is not usually the ideal set up I like. But, this is a solid company and shows no reason to break down.
Based on the shorter cycle, I expect double-bottom to be formed roughly between December 1-4. Watch for the W.
TMO bounced off the 100MA and has formed a bullish sign with a dragonfly doji on Nov 27 trading session. This suggests it would likely run up to test 460, before a minor pullback possibly, and then bounce again off the 100 MA to jump back into it's trading channel.
Green trend channel: This has been TMO's trading channel since March 2020 until Nov 2020. Why has the stock taken this upward channel since March 2020? Look into their earrings reports over the last two quarters and the significant positive surprise in their EPS . Moreover, TMO is a major part of the COVID-19 support infrastructure, providing testing, partnering with leading vaccine pharmaceuticals (including Pfizer).
Purple trend channel: The stock has traded in this channel since Nov 2016 - 10 March 2020. You notice a big green candle on 6 July as TMO bounces into the green channel and doesn't test back into the purple channel ever since. I don't believe, since the context and the importance of the company in the treatment and testing of covid that TMO will re-test the purple channel anytime soon (if ever).
Entry: Taken a small position on Nov 27 @ 446. Will increase position once cycle prediction is confirmed by Dec 1-4.
Target: 560 by 31 December 2020
Good Lick!
