SYMC Stock: Countdown to Launch
I like Symantec Corporation (NASDAQ:SYMC) stock because this company has a certain quality that intrigues me greatly. I use price charts as the basis of all my investment strategies, so it should not be surprising that this certain quality I am intrigued about comes directly from the SYMC stock chart.
My analysis consists of weighing the combination of patterns and signals to come to one conclusion that will give me a trading bias of either bearish or bullish. I have been fortunate enough that life has allowed me the opportunity to use technical analysis on a daily basis for over a decade, coming on two. I have experienced numerous investment cycles and I have seen a countless number of charts.
The SYMC stock chart is indeed a special site to see, because the the pattern that has set up took 12 years to form. I have come to learn that large price patterns over a long duration produce exceptional results.
The following Symantec stock chart illustrates the pattern that has piqued my interest.
Chart courtesy of StockCharts.com
The pattern above contains such beauty, and it is highlighted by its sheer size and duration. This pattern is over a decade in the making, and it’s probably one of the biggest I have come across in a while.
The pattern is known as a rounded bottom, or a saucer bottom, and it does a great job of describing the shape of the pattern above. This pattern is highlighted by a slow-moving trend where many investors finally lose interest in the stock. It is only at this moment that these patterns have a tendency to wake up and catch many off guard.
This enormous pattern is approaching completion and the pattern will be confirmed when the last level of resistance is broken to the upside. I do not believe this level will be broken on the first attempt, and my bias is based on intuition that is based on the many patterns that I have seen over the years.
When this pattern does break to the upside, the initial target price for SYMC stock will be $42.00, and this will be based on extrapolating the depth of the pattern above the horizontal line labeled the “last level of resistance”. The $42.00 price objective will be the first stop, and the potential for further gains in Symantec stock is a high probability.
I have come to know that when a stock makes a new all-time high, this event creates an opportunity for a tremendous amount of gains in short order. This event is especially true the longer it takes for a new all-time high to occur. Twelve years is a very long time, and this will not go unnoticed by chart-watchers.
New all-time highs act like a vacuum in space and time. When this height is reached, there is absolutely no overhead level of objective resistance. All investors who are long on SYMC stock will be holding a profit, and this only leaves the short sellers holding losses. It is not uncommon for this trend to end in a parabolic fashion fueled by speculators chasing performance and shorter sellers running to cover their positions. This is how stocks overshoot any type of rational valuation levels.
The following Symantec stock chart illustrates the developments that are currently transpiring directly below the last level of resistance.
Chart courtesy of StockCharts.com
The price action on the SYMC stock chart is setting up for a move, and this is a theme surrounding most consolidation waves. The consolidation wave on the Symantec stock chart above is approaching completion, and the directionless trading action that dominates the month of September will finally have a direction when a breakout occurs.
I have a slight bias already built in, as I have already assumed, based on past experiences, that the old high posted on the long-term chart won’t be broken on the first attempt. At this point, I am happily sitting on the sidelines with my neutral bias, awaiting a resolution to this pattern.
The Bottom Line on Symantec Stock
I am currently neutral on SYMC stock and watching from the sidelines. My interest is piqued by the pattern that is currently in play, but trader’s intuition has me guarded that this pattern won’t break on the first attempt. A breakout will have tremendous bullish implications and my bias on Symantec stock is hinging on it.