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Finance

Is a Breakout for Orange in the Charts?

A resistance level has emerged in the chart of Orange (ORAN).  If this level is broken, a breakout could occur.

ORAN, formerly known as France Telecom S.A, is a telecommunication services company, which operates mobile and internet services. It provides telecommunication services to multinational companies, under the brand Orange Business Services.

The company generated revenue of €10.58B in the most recent quarter, which was up 0.8% year over year. ORAN was able to return to revenue growth in the third quarter despite a continuing sharp decline in roaming, and a small decline in equipment sales, due to the pandemic. Growth in France and Africa & Middle East were driving revenue.

Last month, ORAN announced the launch of its 5G network in 15 French municipalities, including Nice, Marseille, Le Mans, Angers and Clermont Ferrand. The company expects more than 160 municipalities will be covered with 5G by the end of the year.

The company has a five-year average EPS growth of 20.8% and is currently undervalued with a P/E of 10.4. The stock is up over 11% for the month, but has shown weak near and long-term momentum. ORAN has a “Buy” rating in our POWR Ratings system.

Take a look at the 1-year chart of ORAN below with my added notations:

  Chart of ORAN provided by TradingView

During the past eight months, ORAN has formed a key level of resistance at the $13 (red) mark. The stock has tested that level multiple times and has now fallen back down from $13 again. A solid close above $13 should lead to higher prices for ORAN.

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A long trade could be entered on a breakthrough of the $13 resistance level.

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Christian Tharp, CMT

@cmtstockcoach


ORAN shares were trading at $12.44 per share on Thursday morning, up $0.11 (+0.89%). Year-to-date, ORAN has declined -11.19%, versus a 15.36% rise in the benchmark S&P 500 index during the same period.

About the Author: christian

Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More…

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