GLW Stock: One Obstacle Remains
Corning Incorporated (NYSE:GLW) produces products that range from the aerospace and defense field, all the way to life sciences. It is not only our smartphones that have been improved by the innovations that this company offers. I have been enamored by Corning’s range of products, but I have yet to share the same enthusiasm for the performance of GLW stock.
In 2006, Corning stock hit a high of $24.98, and 10 years later it is trading at $22.97. This is lackluster performance, and one could wonder why I would ever bring up this company as a topic of conversation. The reason is quite compelling, because I have justification to believe that once a key level of price resistance is broken, the performance of Corning stock may leave many in shock.
I am a proponent of technical analysis, and I have been using this style of investment analysis for over a decade. It has served my trading strategies extremely well. I do not believe I could have created a trading strategy using any other base of knowledge. This style of analysis is deeply reliant on price. Although price may seem random at times, in the right context and time frame, a picture develops that can be quite constructive.
Applying this knowledge base to Corning stock paints quite an intriguing picture. There is a key level in Corning stock that I am watching, as the following chart illustrates.
Chart courtesy of StockCharts.com
The GLW stock chart above displays a large ascending triangle. There are two trend lines that make up this pattern. Resistance is marked with a horizontal trend line, and support is marked with an uptrend line. On average, this pattern is interpreted as bullish, because sellers appear at a single price point, while buyers appear at higher price points as time persists. On average, these patterns break out to the upside.
The price level that I am watching is a horizontal level of resistance at $25.00. This is the price level that would cause a bullish frenzy among the investor community. Not only would the bulls rejoice after such a feat, but a break above this level would open the door to much higher prices. The pattern is so big and spans such a long time horizon that a break of $25.00 would act like a vacuum that could violently propel the price of GLW stock higher.
The following Corning stock chart illustrates the recent price action that was instrumental in producing a test of the aforementioned resistance level.
Chart courtesy of StockCharts.com
Corning stock bottomed in 2016, short of the support assumed by the ascending triangle. Reversing higher midstream within a pattern is a bullish event, as buyers are more than willing to step in at higher price levels.
In March 2016, a golden cross was produced when the faster 50-day moving average (highlighted in blue) crossed above a slower 200-day moving average (highlighted in red). This signal is effective in confirming that a bull market has begun. GLW stock continued to climb, and this indicator acts as a tailwind as the bulls are once again in control.
This recent price move in GLW stock is best defined using a trend line. This uptrend line can only be interpreted as bullish, because the price action moves from the lower left to the upper right on the price chart. This trend line defines support and defines one’s risk in a single convenient indicator. As long as GLW stock is trading above this level of support, the odds of a break above resistance grows.
The Bottom Line on Corning Stock
I am bullish on Corning stock, and my view is based on my analysis of the price chart. The resistance level is now being tested, but I would wait for a break above this level before I decide to take action in GLW stock.