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Chart of the Week: Intercontinental Exchange
Our chart is Intercontinental Exchange; symbol ICE. Let’s take a look at this chart. It’s looking really nice here for a bullish play.
As you can see here, this stock has come in with a nice cup-and-handle pattern here. The cup built the right hand side of the base over here as we bottomed at the end of May, early part of June and made a series of higher highs and higher lows. Our textbook pattern of an uptrend.
Once it rallied above this level here – good resistance there from back in March – late March, early April where the stock couldn’t get above $140. Once it rallied back on that bar and came back and pulled back a bit on shallow volume, which you can see right over here. We had a big volume bar over here and a lighter volume on the downside. Tells you what? Tells you that big institutions were in there accumulating the stock after that breakout.
Decent volume also on the way up over here, we’re kind of consolidating over here. But we had a real strong day on July 22 with some good volume too. An accumulation day.
We see up here on the top, the stock is overbought on the relative strength.
Let’s take a look at some of these lower indicators, too. These are really important.
Dip buyers love this name
One I’ve been following quite a bit on this name is on-balance volume. What does that tell you? That tells you that the predominant amount of volume that’s been coming in on this stock when the stock has been moving up has been buyers. Buyers coming in, no question about it, and you can see that very clearly on this chart.
Chaikin money flow right below there has been real strong.
Stochastics got overbought a couple of different times, a couple of different moments this year, and pulled back a bit. But the pullbacks have been rather shallow. We’re still above 80 on the stochastics. Any pullback is being bought by the dip buyers. The pros are coming in and buying the stock.
I think ICE is a good name to take a look at here. We like the trend and we like the opportunity for some higher prices. Probably going to make a move up towards $160 – 165 over the next several weeks. Take a look at it; ICE is the symbol.