Arthur J. Gallagher (AJG) TP-$291 SL-$297Technical Analysis:
-Extremely strong resistance (equilibrium zone on the monthly chart)
-Pattern of change in movement on the daily chart and a double top in lower timeframes, thus there is an alignment of readings
-Strong equilibrium points above $290, which act as technical magnets
Indicators:
-The Ichimoku Cloud shows solid resistance on the H4 chart, and the cloud cross on the daily chart warns of a possible reversal.
-The MACD indicator warns of a probable inflection point on the H4 chart.
0ITL trade ideas
AJG: Entry, Volume, Target, StopEntry: with price above 219.23
Volume: with volume greater than 955k
Target: 243.31 area (this is an area, no guarantee it reaches this price, but you should be selling on the way up)
Stop: Depending on your risk tolerance; Based on an entry of 219.24, 207.22 gets you 2/1 Reward to Risk Ratio.
This LONG swing trade idea is not trade advice and is strictly based on my ideas and technical analysis. No due diligence or fundamental analysis was performed while evaluating this trade idea. Do not take this trade based on my idea, do not follow anyone blindly, do your own analysis and due diligence. I am not a professional trader.
Bearish Rising WedgeAJG has weathered the down turn in the market very well so far. Price is sitting above the .236 of the trend up.
Price is in side a Rising Wedge that is not valid until the bottom trendline is broken. This can be a long term pattern, but I have noted these usually break in a more timely manner since we have been in a bear market.
A rising wedge is a reversal pattern and both trendline slope upward, then narrow at the apex. Bearish confirmation of the pattern does not come until the support line is broken in a convincing fashion. The bottom trendline can act as strong support until it is finally broken.
The bottom trendline usually has a steeper slope than the top trendline, but unlike a symmetrical triangle, a rising wedge has both trendlines sloping up.
This pattern interrupts supply and demand and represents too much supply.
This is not a good pattern to be in so close to the top.
Short when the bottom trendline is broken.
I plan to revisit this one.
No recommendation
Is $AJG making the handle to its cup?Notes:
I last spoke about this on July 26, 2022 and since then gone up but came back down erasing almost all of the gains. If you didn't take profits earlier on its gap up that's okay as it seems like $AJG may be making the handle to its cup. Keep an eye on the $170 area as it should hold as support.
It seems now that the earnings reaction has passed it may bounce from here and continue its momentum. Based on its trend, volume and price level my radar is signalling a buy around this price.
Technicals:
Sector: Financial - Insurance Brokers
Relative Strength vs. Sector: 1.81
Relative Strength vs. SP500: 3.86
U/D Ratio: 1.28
Base Depth: 24.23%
Distance from breakout buy point: -6.5%
Volume 7.22% above its 15 day avg.
Trade Idea:
* You can enter now if you haven't already or add to your existing position as the price is coming towards support
* If you want to be a bit cautious you can wait a couple of sessions to see how the price behaves around this level and get in on a later potential buy signal
* I would personally suggest the later as it's a bit more of a defensive play
* This stock usually has local tops when the price closes around 9.35% above its 50 EMA
* Consider selling into strength if the price closes 9.15% to 9.55% (or higher) above its 50 EMA
* The last closing price is 3.9% away from its 50 EMA
$AJG is coming up on the right side of its base!Notes:
* Very strong up trend on all time frames
* Great earnings track record
* Basing for the past ~7 months
* Offering a very low risk entry
* Recently saw a retest of its 50 day line
* Held up really well while the general market and the Financial sector where taking a beating
Technicals:
Sector: Financial - Insurance Brokers
Relative Strength vs. Sector: 1.23
Relative Strength vs. SP500: 1.29
U/D Ratio: 1.25
Base Depth: 25.64%
Distance from breakout buy point: -8.82%
Volume 45.14% above its 15 day avg.
Trade Idea:
* You can enter now as the price tries to break through the 170 level with higher than average volume and while the price is still close to its 50 day line
* You can wait for the break and close above 170 before entering as that would signal that it's ready to move higher
* If you're looking for a lower entry you may find one around the 167.55 area as that should hold as short term support
* This stock usually has local tops when the price closes around 9.35% above its 50 EMA
* Consider selling into strength if the price closes 9.15% to 9.55% (or higher) above its 50 EMA
* The last closing price is 3.69% away from its 50 EMA
WallStreet-Trading: Buysignal AJG
The stock AJG on our US watchlist just broke out of a sound base and triggered a buy signal. We are adding a 1/4 position of AJG to our US model portfolio.
All stocks on our watchlist meet the criteria according to Mark Minervini's trend template and have sound fundamental data.
AJG finally looking to move higher?* Great earnings
* Very strong up trend
* High 3-month relative strength in the Financial sector
* Breaking out of a tight range of ~3.35% with slightly higher than average volume
* I originally mentioned this as it was breaking out of the cup with handle pattern at $153.09
* It has since then move higher and then started to consolidate
* Even as the financial sector took a hit in the past week AJG managed to consolidate and stay afloat
* This shows that there are institutions still interested in this stock and are holding it up
* Now as the markets are showing signs of recovery, AJG is breaking out of the consolidation
Trade Idea:
* Now's a great time to enter as the price is just above the broken resistance of the range
AJG looking to continue its moveI last spoke about this back in late September as it was forming its cup with handle pattern. The stock since then broke out and rallied higher from there.
Due to the current market correction the stock did slow down but now is looking to continue its move.
The tight consolidation it was in during this short correction indicates that institutions were accumulating during this time.
The stock broke out with higher than average volume and is showing signs of continuing its move.
Trade Idea:
* Now's the right time to enter as it's not too far from its broken level.
* If you're looking for a slight discount you can look for an entry near the $164.08 area as this should now serve as support.
Caution:
* A daily close below 164.08 would put it back inside the consolidation range.
* A daily close below $160.21 would negate this idea.
AJG looking to break and move higher!General Info:
* Great earnings quarter over quarter
* Strong up trend
* Looking to break from ~4 month consolidation
* Volume drying up as it approaches resistance of $154
Trade idea:
* Wait for a daily close above $154 for a confirmation.
* Even after the break this may consolidate for a while as it's drying up on volume
* Or it may consolidate for a while before making a clear break higher.
In either case, this may make a cup and handle pattern before heading higher.
This is one to keep an eye on!
Note:
* Given its growth, this is a great long term hold as well as it pays out dividends with a Payout ratio of 40.10%; this means that the company has a lot more room to grow and possibly increase dividends as well.
$AJG can fall in the next daysContextual immersion trading strategy idea.
The demand for shares of Arthur J. Gallagher & Co looks lower than the supply.
This and other conditions can continue to cause a fall in the share price in the next days.
So I opened a short position again from $74,93;
Information about stop-loss and take-profits will be later.
Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision.
Always do your own analysis before making deals. When you use any materials, do not rely on blind trust.
You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy.
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