During the start of 2023, ABC stock price was under the control of the bears and it was in a downtrend forming lower lows, while falling from the high of $169. The downtrend pushed the price toward the $150 mark and it formed a support at $147.50.
This turned out to be a crucial support level as the price gained strong bullish momentum and shot up to form a high at $193.44. The price encountered a hurdle near $175.50 and retraced toward the $164 level. After the retracement, the price regained bullish momentum to shatter the resistance level of $175.50.
Currently, AmerisourceBergen stock price is facing rejection from the $193 level. The recently closed candle was not a strong bearish candle and if the price can form a support, there is a possibility that price might shatter the resistance level of $193 and rise toward the major psychological level of $200.
If the price can break below $188, there is a high probability for the price to retrace toward the recent support of $184, which would cause a loss of roughly 2%. On the other hand, if the price can break and close above $193, it can move further upward towards $200.
Earning Results Of AmerisourceBergen
The Q2 earning results helped the price gain bullish momentum. The distribution company beat the estimates for both the revenue and earnings per share. The consensus estimated revenue to be $60.459 billion but it turned out to be $63.457 billion, resulting in a surplus of $2.999 billion or 4.96%.
The Q2 earning results will be released on August 2, 2023. The consensus has estimated the revenue to be $63.454 billion and earnings per share to be $2.813. The market capitalization of AmerisourceBergen is $38.60 billion.
Will ABC Stock Price Rise Above $193 in the Upcoming Days?
The stock price trades above the 20,50,100 and 200-day EMAs, indicating bullish momentum in the price. Chaikin money flow score is 0.39, suggesting that there is strength in the market. CMF has been above 0 since April, indicating the strength of bullish momentum.
The relative strength index (RSI) is 75.76, and has been residing in the overbought zone since June 15. There is a chance of reversal and retracement in the price. The recent candles have also started to show signs of participation of bears in the market. The recent candles have also closed as bearish candles.
Conclusion
The market structure and price action of AmerisourceBergen is bullish overall, but the price has started to show signs of retracement. The technical parameters suggest the possibility of a short-term pullback. However, the bullish momentum is quite strong and there is less chance of reversal.
Technical levels
Major support: $164 and $175.50
Major resistance: $193 and $200
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/06/amerisourcebergen-corp-abc-stock-price-hovers-below-193/