NCR Corp. (NCR) is trading in a horizontal channel, also known as a rectangle pattern. Traders should be ready for the stock to breakout or breakdown in the near future.
NCR designs and services automated systems that streamline interactions between businesses and consumers. The company is the largest global vendor of ATMs and also sells point-of-sale terminals and self-service check-out systems for retail stores, airlines, and hotels. While the company is seeing a decline in ATM revenues from the coronavirus, hit is being offset by a strong demand for software and service solutions across banking and financial services.
Take a look at the 1-year chart of NCR below with added notations:
Chart of NCR provided by TradingView
After finishing up its steep drop in March, NCR moved into a trading range and a rectangle pattern was formed. The stock has a key resistance area around $22 (red), and an important area of support at $16 (green).
At some point, the stock will have to break either the $22 mark or the $16 one. When that happens, a possible long position could be initiated after a close above $22 or a short trade could be entered after a close below $16.
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NCR shares were trading at $20.96 per share on Tuesday morning, up $0.33 (+1.60%). Year-to-date, NCR has declined -40.39%, versus a 7.57% 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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