SENS Stock: A Technical Price Pattern Is Approaching Completion
Market volatility is the current theme for 2018, and it is causing quite the treacherous market environment as the market continues to swing violently.
The market indices have been testing important levels of price support in recent days and, as long as the indices remain perched above price support, I can only assume that the stock markets are still geared toward higher prices.
With this notion in mind, I continue to look for investments that are primed for a move toward higher stock prices. My recent search has caused me to cross paths with Senseonics Holdings Inc (NYSEAMERICAN:SENS) stock, and I am quite intrigued by my findings.
There are a number of technical indications that have been generated on the Senseonics stock chart that are suggesting that SENS stock is setting the stage for an epic move toward higher stock prices.
The first set of technical indications is highlighted on the following Senseonics stock chart.
Chart courtesy of StockCharts.com
The technical indication highlighted on the SENS stock chart is a wave structure. It’s an influential momentum indicator that has been responsible for creating and sustaining a bullish trend in SNES stock.
This wave structure is constructive in nature. Therefore, it consists of impulse waves and consolidation waves.
The wave highlighted in green is an impulse wave, and it is advancing in nature. Impulse waves capture the stage in a bullish trend when an investment makes a sustained move toward higher prices.
The wave highlighted in purple is a consolidation wave, and it is corrective in nature. Consolidation waves capture the stage in a bullish trend when an investment corrects. Corrections are very important because they create the necessary conditions so that, once the consolidation wave is complete, a new advancing impulse wave can follow.
The Senseonics stock chart illustrates that SENS stock is exiting the consolidation wave in an upward direction, suggesting that a new advancing impulse wave is now in development.
This notion of higher SENS stock prices via an impulse wave is currently being reinforced by the moving average convergence/divergence (MACD) indicator.
MACD is a very influential indicator that is used to determine whether bullish or bearish momentum is influencing the trading action in a stock. This indicator is very influential because the wave structure coincides with this indicator. Bullish momentum implies that an impulse wave is in development, while a bearish MACD cross implies that a consolidation wave is in development.
In February 2018, a bullish MACD cross was generated, and it is currently suggesting that SENS stock can sustain a move toward higher prices, which is in line with the notion that an impulse wave is in development.
This notion of higher stock prices is set to complete a much larger technical price pattern, which is highlighted on the following Senseonics stock chart.
Chart courtesy of StockCharts.com
The technical price pattern highlighted on the Senseonics stock chart is a cup and handle price pattern. A cup and handle pattern is created when a significant level of price resistance prevents the stock price from advancing.
This level of price resistance is responsible for creating two distinct troughs, and the first trough is much larger than the second. These troughs are what create and characterize the cup and handle price pattern.
Resistance outlined by the cup and handle price pattern currently resides at $3.50, and a confirmed close above this level of resistance will complete the pattern.
The wave structure and the momentum indicator highlighted earlier are already implying that higher Senseonics stock prices are likely. So it’s only a matter of time before SENS stock closes above $3.50, completing the cup and handle price pattern, and much higher prices prevail.
There are a number of indications on the Senseonics stock chart which are suggesting that SENS stock is on the verge of breaking out of the cup and handle price pattern. Once this event occurs, I believe that much higher stock prices will follow.