Atlantic Tele-Network, Inc., the telecommunications company that is headquartered in Beverly, Massachusetts, ATN International Inc. (NASDAQ: ATNI) seems to be getting ready for a price bump as per the latest charts.
Bullish Move – Chart Indications
#1 Falling Wedge Pattern: As you can see from the daily chart of ATNI, the stock has been forming a falling wedge pattern for the past few months. This is marked as pink color lines. The stock had taken support at the bottom of the wedge multiple times before moving up again. A falling wedge is a bullish pattern and once the stock breaks out from it, it may move higher in the short term.
Daily Chart – ATNI
#2 RSI Strong: Relative strength index (RSI) is currently above 50 and moving up. This indicates the strength of the current upmove.
[hana-code-insert name=’adsense-article’ /]#3 Bullish Stoch: The %K line is above the %D line of the stochastic.
It is also moving up from oversold levels.
All this indicates possible bullishness.
#4 MACD above Signal Line: In the daily chart, the MACD (light blue color) is currently above the MACD signal line (orange color).
This indicates a possible bullish setup.
#5 Stoch -Price Bullish Divergence: There is a bullish divergence between Stochastic and price in the weekly chart.
While the price formed a lower low, the Stoch formed to a higher low. This is marked as orange dotted lines in the chart. A bullish divergence is usually the sign of a possible upmove in the near-term.
Weekly Chart – ATNI
#6 Bullish Stoch: The stochastic is currently moving up and the %K line has currently crossed above the %D line. This usually indicates bullishness.
#7 Bullish MACD: In the weekly chart as well, the MACD line (light blue color) is currently above the MACD signal line (orange color) which is typically considered as a potential buy signal.
#8 Oversold RSI Moving up: In the weekly chart, the Relative strength index (RSI) is currently moving up after reaching oversold levels. This indicates the strength of the current upmove.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, you can purchase the shares of ATNI if the stock crosses above the resistance level of $63.00
TP: Our target prices are $70 and $80 in the next 4-6 months.
SL: To limit risk, place a stop loss below $59.00. Note that the stop loss is on a closing basis.
Our target potential upside is 11% to 27% in the next 4-6 months.
For a risk of $4.00, our first target reward is $7.00 and the second target reward is $17.00.This is a nearly 1:2 and 1:4 risk-reward trade.
In other words, this trade offers 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 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 energy sector.
Happy Trading!
Tara
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