IQV Stock: Technical Indications Support a Bullish Outcome
I have been bullish this year, and I have maintained this view in light of the tenuous market conditions that prevailed in the first part of 2018. The reason why I am bringing this up is because I now believe that my view is going to be vindicated. I believe that the markets are going to surprise to the upside in the latter half of 2018 and it is likely going to catch many investors off guard.
Already we have seen the Russell 2000 small-cap index forge a new all-time high, and the Nasdaq Composite has followed suit. These indexes represent a broad basket of stocks, and these new highs are suggesting that further gains are likely to follow.
I am focusing on Iqvia Holdings Inc (NYSE:IQV) stock because I believe it is going to power higher along with the markets going into year’s end.
My beliefs are centered around a number of technical indicators that are coming together to suggest that such an exact outcome is likely to happen in the near future.
The first technical indication is a technical price pattern that is currently approaching completion.
This technical price pattern is highlighted on the following Iqvia Holdings stock chart.
Chart courtesy of StockCharts.com
The pattern highlighted on the preceding IQV stock chart is a descending channel.
A descending channel is a technical price pattern that is characterized by a series of lower lows and lower highs, which defines an orderly downtrend.
Capturing this pattern was achieved using two trend lines that were created by connecting the series of lower highs and lower lows. These trend lines pinpoint where respective levels of price support and price resistance reside.
This pattern is bearish and as long as the Iqvia Holding stock price is contained within it, lower prices are likely to prevail. The bearish implications suggested by this pattern will only be negated once resistance is broken.
The reason why I am focusing on IQV stock is because I have the inclination to believe that the bearish implications suggested by this pattern are going to be negated in the near future, and higher Iqvia Holdings stock price will prevail as a result.
My inclination toward higher Iqvia Holdings stock prices is based on the indications highlighted on the following IQV stock chart.
Chart courtesy of StockCharts.com
This IQV stock highlights a wave structure that has been supported by an influential momentum indicator.
This wave structure consists of impulse waves and consolidation waves. These waves have been responsible for creating and sustaining the bullish trend in Iqvia Holdings stock.
The impulse wave, which is highlighted in green, is advancing in nature. This wave defines the stage in a bullish trend when the stock price stages a sustained move toward higher prices.
The consolidation wave, which is highlighted in purple, is corrective in nature. This wave defines the stage in a bullish trend when the stock price corrects and refrains from advancing.
Corrective price action is a necessary part of every bullish trend because it serves to unwind any extreme conditions that were created by the impulse waves that preceded it. This sets the stage so that another impulse wave can follow.
The descending channel highlighted earlier doubles as a consolidation wave on this Iqvia Holdings stock chart. A break above resistance will complete the consolidation wave, suggesting that another advancing impulse wave is set to follow.
Fortunately, there is already an indication suggesting that such an exact outcome is likely to occur in the near future.
This indication comes from a very influential momentum indicator known as the moving average convergence/divergence (MACD) indicator.
MACD is trend-following momentum indicator that distinguishes whether bullish or bearish momentum is influencing the trading action in a stock. Bullish momentum implies that a stock is geared toward higher prices, while bearish momentum implies that a stock is geared toward lower prices.
A stock cannot sustain a move in either direction unless the applicable level of momentum is supporting it. This is why every bullish MACD signal has been accompanied by an impulse wave and every bearish MACD cross has been accompanied by a consolidation wave.
A bullish MACD signal was generated in the first week of June, implying that Iqvia Holdings stock is now geared toward higher prices. This suggests that the consolidation wave is approaching completion and, therefore, an impulse wave is on the horizon, where higher IQV stock prices will prevail.
I believe that higher Iqvia Holdings stock prices are on the horizon. These beliefs are centered around a number of technical indications that are either in bullish alignment or approaching completion. These indications support the notion that IQV stock is likely to appreciate alongside the market.