This Stock Looks Poised for an Upmove

Comcast Corporation (NASDAQ: CMCSA) seems poised for a price surge based on its latest charts.

The company is the American global media, technology, and telecommunications conglomerate that provides broadband, mobile, and video services (via Xfinity and Sky), owns major content creators (NBCUniversal), and operates theme parks, reaching hundreds of millions globally through connectivity, platforms, and popular entertainment like movies, news (NBC, Telemundo), and sports.

It’s a leading provider of internet, cable TV, and phone services in the U.S., and also offer business solutions and streaming through Peacock.

Bullish Indications

#1 Falling Wedge Pattern Breakout: As you can see from the daily chart, the stock had been forming a falling wedge pattern for the past few weeks. These are marked as purple color lines. The stock has currently broken out of the falling wedge pattern and looks poised for an upmove. A falling wedge is a bullish pattern and a breakout from it implies that the stock may move higher in the short term.

#2 Price above MA: The price is currently above the short-term moving average of 50-day SMA, indicating that the bulls are gaining control. This is a positive indication.

#3 MACD Above Signal Line: In the daily chart, the MACD line (light blue color) is currently above the MACD signal line (orange color),          which is typically considered bullish.

#4 Bullish ADX: The ADX indicator shows that the +DI line is currently above the –DI line and the ADX line has started to move up from below the –DI and +DI lines. This indicates possible bullishness.

#5 Above Support Area: As you can see from the weekly chart, the stock has currently moved up from a resistance-turned-support level. This level is marked as a pink color dotted line. This looks like a good area for the stock to move higher.

#6 %K above %D: The %K (blue) line of stochastic has currently crossed above the %D (Orange) line in the weekly chart and is also moving higher from oversold levels. This is a possible bullish indication.

#7 Bullish RSI: In the weekly chart, the RSI is currently nearing 50 and moving higher. This is a possible bullish sign.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, you can purchase shares of CMCSA above the price of around $30.00.

TP: Our target prices are $35.00 and $39.00 in the next 3-6 months.

SL: To limit risk, place a stop-loss at $27.00. Note that the stop-loss is on a closing basis.

Our target potential upside is 17% to 30% in the next 3 to 6 months.

For a risk of $3.00, our target rewards are $5.00 and $9.00. This is a nearly 1:2 and 1:3 risk-reward trade.

In other words, this trade offers nearly 2x to 3x more potential upside than downside.

Risks to Consider
The stock may reverse its overall trend if it breaks down from the falling wedge pattern with high volume. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.

Happy Trading!

Tara

Did you spot this in the Oval Office last week? [sponsor]
When Tim Cook stood in the Oval Office last week, all eyes were on the "unique 24K gold gift" he presented to President Trump. But many viewers missed an even more important moment in that 30-second clip. One that unmistakably singled out what Futurist Eric Fry calls "possibly the best AI investment anyone could make right now." Eric believes this little-known partner to Apple could go crazy over the next 12-24 months, potentially leaving well-known AI stocks like Nvidia, Microsoft and Google in the dust. Click to get full details on the company.