During earnings season, charts can provide value by judging stock price reactions to earnings reports. We pay particular attention to support and resistance levels, and watch for breakouts and breakdowns that serve as technical catalysts. Following earnings this morning, healthcare services stock IQVIA Holdings (IQV) reversed a four-month consolidation by breaking above the first resistance from the daily cloud model (shown in the shaded area of the chart below) as a medium-term bullish catalyst. The breakout shows no signs of exhausting its upside, and short-term momentum is positive. Our medium-term indicators are showing a turnaround for IQV, suggesting the uptrend is sustained. The weekly MACD is on the brink of a buy signal for the first time since November, and the weekly stochastics have not yet entered overbought territory. This supports the view that IQV will continue its rise towards resistance from the Fib retracement level near $258 in the coming weeks.From a long-term perspective, IQV appears to be at a bullish turning point after the 2022-2023 bear market cycle. The chart has a rounded bottom shape with the latest rally and higher lows remain on the chart, indicating the stock is in the early stages of a cyclical bullish trend. In the long-term, we expect the stock to retest the final resistance near $285. Long-term support on the chart is defined by the weekly cloud model, which will rise to roughly $215 in the next month. Short-term support is found at the 50-day and 200-day moving averages near $220, and investors may want to use this as a stop-loss threshold for risk management. —Katie Stockton and Will Tamplin Disclosure: All opinions expressed by CNBC Pro contributors are solely the contributors’ own and do not necessarily reflect the opinions of CNBC, NBC UNIVERSAL, its parent or affiliates, and may have been previously disseminated by the contributor on television, radio, the Internet or other media. The content above is subject to our Terms of Use and Privacy Policy. This content is provided for informational purposes only and does not constitute financial, investment, tax or legal advice, or a recommendation to purchase any securities or other financial assets. The content is general in nature and does not reflect any individual’s unique personal circumstances. The content above may not be suitable for your particular situation. You should strongly consider seeking advice from your own financial or investment advisor before making any financial decisions. Click here for the full disclaimer.
This health-care stock just broke out higher and shows little signs of slowing down, according to charts
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