IVZ Swing Trade Long on bounce off supportThis is an idea for a swing trade for a bounce off of support going back to resistance around 10.
IVZ trade ideas
Good time to buy IVZAs they announce a cut in dividend payed by 50% Invesco it's a good buy at the price below 8, as their financials looks good even in these hard time for energy industry.
Disclaimer: I’m not: a certified financial planner/adviser, a certified financial analyst or even an economist. For now, I do this as a hobby.
INVESCO's accumulation trading range. List of published scripts:
www.tradingview.com
This stock seems to be in accumulation as per volume signatures. Furthermore we have clear range levels outlined with the exception of the Range Low Low (RLL) that is still missing. Perhaps a secondary test to the lows and test that liquidity.
Overall it seems the stock is looking like preparing for up rally unless something at fundamentals levels changes drastically.
$IVZ Strategies on a Value Growth StockIVZ has low P/E, D/E, and P/B ratios, despite growing revenue and dividends. Therefore, my 5 year outlook is bullish. I suspect the best times to buy are around a low of $19.40 for a short turnaround, but the price may get as low as $18.58 in as little as 2-3 weeks if the impulse from Jan-Feb echos the latest high.
Other possible low points for the suspected echo impulse, using fib levels, are 18.65, 18.93, 19.14, and 19.29. Pyramiding your buys using these levels should give a relatively low average position for long term growth, which can be sold off, probably during the year, for a profit to adjust the weight in the portfolio back to a reasonable level to meet your portfolio diversity goals. Despite the effort in averaging down and out, I do believe it is a worthy strategy to reap greater returns rather than buying once when it looks good.
The average price per book value for this stock is less than one and averages greater than 1.65, according to Yahoo. To reach equivalent value if book value remained constant, which it will not, the factor is 1.8x. Earnings are expected to rise, so book value itself will rise over time. Book value has risen 50% in the past ten years, so a 5 year price target given today's suspected low and a 1.2x oversold factor (because who sells at value?) will be 19.40*1.8*1.25*1.2 = $52.38 or about a 170% return on investment, plus another $6 in 5 year straight dividends at $0.30 per quarter.
Due to the volatility and bullish/bearish runs with bulls beating bears in the end, this makes a great swing trading opportunity. When the stock trends above 1.67% monthly or 0.38% weekly, the stock is performing greater than its exponential averages:
Average Exponential Monthly (%) Growth: (2.7^(1/(12*5))-1)*100 = 1.67%
Average Exponential Weekly (%) Growth: (2.7^(1/(365/7*5))-1)*100 = 0.38%
This is likely to occur now and less likely over the course of 5 years. Therefore, linear price increments may be more useful in determining rapid growth in earlier stages. In which case, when the stock trades above $0.55 a month or $0.13, the stock is performing better than its linear averages:
Average Monthly ($) Growth: (52.38-19.4)/(5*12) = $0.55
Average Weekly ($) Growth: (52.38-19.4)/(5*365/7) = $0.13
Right now, we are in a bit of a bull swing since Dec 24th, as with most (financial sector) stocks. There is some potential to ride this out for a while, so adjust your alerts to watch for the bear once it crosses down on the average expected growths. This stock has a tendency to go up in the early mornings around 10:00AM, so that would be your time to sell if the previous week was low and would not be your time to get hopeful.
One to keep an eye on: IVZWhen a long term down trend line (weekly chart) is broken and returned to and provides support (weekly chart at "2" it can be a sign of positive things to come. Point 2 is near the start of the daily chart. Just looking at the chart pattern on the daily chart I favor there may be one more down move before the correction ".2" is over. Maybe not. Personally I am waiting to see. If it does could provide a good buying opportunity. Long term target around 70.
I am in to charting not fundamentals. But Goldman recently upgraded this to buy. Ford Equity Research calls it a strong buy. So some folks smarter than myself financially think there is something positive going on.
Take care. Process your way.
IVZ LongOn Balace Volume (OBV) shows that interest may be back in this great asset manager, which saw positive capital inflow as of the latest quarterly report despite an overall negative trend in the sector.
When volume rises, price generally tends to follow.
Noteworthy is also MACD which just crossover its signal hinting at a possible change of long-term trend.
Furthremore, the possible volatily ahead could also play as a positive catalyst on the active managed funds positioning Invesco to benefit further.
Should you want to discuss your ideas with me or give me any feedback, feel free to leave a comment!
