Technical Analysis Predicted Amphenol’s 15% Gain (APH)

aph-daily-stock-graphAmphenol’s (NYSE:APH) shareholders were surely pleased with the Q2 earnings announcement, which pushed stock price 15% up during yesterday’s trading session. Swing and position traders might have also been benefited if they have paid attention to the signals of technical analysis that were apparent both at the daily and the weekly graphs. Those signals include a triple bottom inside a gap right on the 200-day moving average and a key support level at the weekly stock graph. A sound trading strategy would have been to buy APH stock at $52 with a stop loss at $50 that has now already shown a $7 per share profit.

Amphenol connectors seem like a good investment right now, as Amphenol stock is looking promising in all time frames, even at the monthly graph. New lows and new highs prove the long-term uptrend of the tech stock, which might slow down at $62. Still the buying power printed on yesterday’s candlestick could be enough for a new breakout above the resistance level of the all-time high. On the other hand a worrying bearish formation can be found at the monthly chart and that is a MACD divergence completed in May. Given the importance of such a formation and the likelihood of a breakout, we could be talking about an even stronger uptrend in the near future.