The global independent investment banking advisory firm headquartered in New York, Evercore Inc. (NYSE: EVR) seems to be poised for a price surge as per its latest charts.
Bullish Indications
#1 Falling Wedge Pattern Breakout: As you can see from the daily chart, EVR has been trading within a falling wedge pattern during the past few weeks. This is marked in the daily chart in pink color. Currently, the stock has broken out of the falling wedge pattern. A Falling Wedge Pattern is a bullish pattern. Once the stock breaks out from it, it has the potential to move further up.
Daily Chart – EVR
#2 MACD above Signal Line: The daily chart shows that the MACD line (blue color) is currently above the signal line (orange color). This is a possible bullish setup.
#3 %K crossed above %D: The %K line has currently crossed above the %D line in the stochastic.
This is a bullish sign.
#4 Above MA: In the daily chart, the stock is currently trading above its 50-day SMA.
This implies that the bulls are currently in control.
#5 Bullish ADX and DI: The ADX indicator shows bullishness because (+DI) is greater than (-DI), and ADX has started to rise from below both (+DI) and (-DI).
These point to a possible upmove in the near-term.
#6 Unbroken Uptrend in Weekly Chart: As evident from the weekly chart, the stock’s prevailing uptrend is still unbroken. This is a bullish sign. The stock is also above its 200-week SMA, which indicates that the bulls are currently in control.
Weekly Chart – EVR
#7 Fibonacci Support: Usually, after an up-move, stocks retrace to any of the key Fibonacci levels before resuming its upmove. EVR had taken support at its 38.2% retracement level before moving higher. This seems like a good support area for the stock.
#8 Bullish Stochastic: The weekly chart shows that the %K line is above the %D line in the stochastic. The indicator is also moving up from oversold levels. All this indicates that an upmove may be imminent.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for EVR is above the price of $84.20. This is marked as a green dotted line in the daily chart.
TP: Our target prices are $90 and $100 in the next 4-6 months.
SL: To limit risk, place stop-loss at $80.30. Note that the stop loss is on a closing basis.
Our target potential upside is 7% to 19% in the next 4-6 months.
For a risk of $3.90, our target rewards are $5.80 and $15.80. This is an almost 1:2 and 1:4 risk-reward trade.
In other words, this trade offers nearly 2x to 4x 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 a 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
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