Bombardier Stock Is Targeting THIS Important Level
BBD.B Stock: Bullish, But Still Bearish
The bullish price action on the Bombardier, Inc. (TSE:BBD.B) stock chart has been nothing short of spectacular. It is becoming more and more apparent that the low that Bombardier stock visited in February 2016 was an overshoot, and it is likely that BBD.B will not be revisiting that level anytime soon.
I have been following BBD.B stock for quite some time and the stock’s ability to meet and exceed my bullish expectations has been exceptional. Since the low that was created on February 8, 2016, at $0.72, bullish price action has dominated the landscape, but there is one caveat. All this bullish price action has been within the confines of a larger bearish trend.
The advance in Bombardier stock continues to be constructive and it suggests that the larger bearish trend in BBD.B stock will, at minimum, be put to a test.
The following stock chart illustrates where the bullish price action first developed.
Chart courtesy of StockCharts.com
The BBD.B stock chart above illustrates the impressive dynamic of bullish indicators, and price action, that began pushing Bombardier stock higher after it bottomed in February 2016.
This bullish price action consists of impulse waves that advance price, and consolidation waves that unwind overbought conditions and set up the next impulse wave. These waves have propelled BBD.B stock from a low of $0.72 to where is currently stands at $2.60.
When Bombardier stock completed the initial impulse wave off the lows, a golden cross was generated. This bullish signal is produced when the faster 50-day moving average crosses above the slower 200-day moving average. Traders use this signal to confirm that a bullish trend has begun, and therefore their trading strategies favor higher prices.
The completion of the impulse wave initiated a consolidation wave, where overbought conditions were unwound, and Bombardier stock managed to successfully test the 200-day moving average. The 200-day moving average is the dividing line between stocks trading in a bull market versus stocks trading in a bear market. Trading above this moving average is bullish, and trading below it is bearish. Successfully testing this moving average from above serves to reaffirm that the trend is still bullish.
In the months that followed this successful test of the 200-day moving average, The stock proceeded to complete the consolidation wave by exiting the wave in an upward direction. The exit, highlighted as a breakout on the BBD.B stock chart, suggested that a new impulse wave was set to develop.
The following Bombardier stock chart illustrates the advancing impulse wave that followed and its bullish implications.
Chart courtesy of StockCharts.com
The BBD.B stock chart above illustrates the bullish price action that followed the completion of the consolidation wave. It is easy to see that the same type of bullish action continues to drive Bombardier stock higher.
Another consolidation wave has broken to the upside, and it once again suggests that another impulse wave is set to develop. This price action continues to suggest that higher prices are likely.
I hate to say it again, but all this bullish action has been within the context of a large bearish trend and the following Bombardier stock illustrates this notion.
Chart courtesy of StockCharts.com
The long-term chart of Bombardier stock illustrates that a downtrend has defined a bearish trend in BBD.B stock that began after shares peaked in 2000. This trend line is created by connecting the peaks on the price chart. In order to reverse the bearish implication suggested by this price chart, The stock will need to break above this trend line.
This level currently sits at $3.40 and it presents a logical price objective for the current rally in BBD.B stock.
Bottom Line on Bombardier Stock
Bombardier stock continues to trade with a bullish bias that suggests higher prices are likely. This bullish bias is within the context of a larger bearish trend and resistance is going to be met when BBD.B stock tests the downtrend line.
