IHS Markit Ltd (INFO.NASDAQ)

8 September 2017




Technical Summary: IHS Markit is not a stock that we cover fundamentally but it recently met our watchlist criteria because its chart pattern. The information analytics company has been on a consistent long term up trend (see inset 5 year chart). This continued until May of this year where the stock reached a short term top. Profit taking then ran the stock down from around $48 per share down to $44 where it found support. The stock then rallied back up into prior resistance where it sold off again. This time there was less selling as the stock pulled back to around $45 per share. The stock then rallied again until it met resistance before pulling back. The stock this time was sold down to around $45.50.
Selling supply seems to be exhausted at this point as the stock seems poised for a breakout. Traders can look to buy the stock as it breaks through overhead resistance (preferably with increasing volume). Traders can accept they are wrong and stop themselves out if the stock returns to its base at around $46 per share.

Classic Volatility Contraction Pattern

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