Chart of the Day: INTU Potential Rebound

0:00It's time now for our chart of the day joining us for a breakdown of Brett Crowder senior manager of trading and derivatives coaching Charles Schwab whenever I see into it at this time of year I immediately think how do you filed your taxes yet? I won't ask you that question, Brett. All right, you've got to look at the five day chart for into it. No pressure. You still got time to have it. All right, what does that look like? We'll leave the taxes aside. So let's let's look at this Diane. So what we're seeing is actually a tell of two channels on this chart. If we break this one down starting from left moving to the right, we'll see about a week ago. The stock was trading around $410 and made a pretty good move up to the 431 444 area where it took a breather and went sideways for a couple days, only to make another really strong climb from 444 up to 460 to 484. Once it got up to that area, it took another breather and has really been channeling since then. Now if we go down to the RSI, we can see there's a support level that's been holding. It's actually been rising, suggesting that bullish pressure has been building. And if we look at the stock as well during during that corresponding

1:07time frame, what we see is it's also not dropping down to the bottom of the channel. So bullish pressure is building potentially breaking it out of this channel at some point, maybe moving it up that distance. Again, we could push it up to the 510 area. And but what we're seeing is it's a quick pop and then a breather, a quick pop and a breather. So we'll see if it does that again. But it was just, you know, kind of sum up the overall 5 day, 5 minute. Really it is just kind of drifting that we're moving higher with bullish pressure building that we'll see if that spills over into the longer term chart. I am. OK, you've got to look at the longer term chart that begs the question, what does that look like a one year? Yeah, so this one's kind of an interesting little bit different. So really this one, if we look, break it down from left to right. Well, it was interesting about this is last July, the end of July last year. It was up at $800. Then it fell down. It was held to the horizontal support level, the yellow line that was going along most of the chart until about December. And then once it broke through that support level in December, it really took a free fall, falling all the way down to about 350. So this stock dropped more than half.

2:16And so it's really has been beat up and what that creates now is we have a strong drop in a rebound around 350, which ever since about that earnings announcement, it has been climbing can see all the green candles that has happened since that earnings. Now, this creates a bearish flag. And so while we have the short term bullishness, and there's been a lot of bullish momentum here is we just talked about on the short term, you know, five day chart. What this creates on the longer term chart is a potential for that flag work. It could find some resistance. They have a couple of lines in here. We have the 38.2% the 50 and the 61.8% Fibonacci tracements. And what these are general areas where this stock could potentially find resistance and possibly roll over and head back down. So you mentioned those price targets, though, you know, upgrades and and all that around 700. Well, if it's going to get there, it's going to have to break this 477, which we're seeing that bullish pressure in the short term. So that's a possibility hasn't rolled over here yet. 516 or the 50% line would be the next level of resistance, which can be a little stronger area. And then you'd have to get through the 554 for it makes up to the 700. If not, if it does roll over, chairs would look for it to possibly fall back down to the 353 area. So the someone up, we have longer term bearish pressure, short term bullish pressure, and some potential resistance areas that's going to have to break through before it makes that climbed I end.

3:40Yeah, listen, when they said 700 as their target, I was like, whoa, there's a long road there to get there. So we shall see. Thank you, Brad. That is Brett Crowder senior manager trading and derivatives coaching Charles Schwab.