Here’s your trade on Autoliv $ALV – August 2, 2023
This is Scott with your Chart of the Day. I want to take a quick look at Autoliv ( NYSE: ALV ).
Now, despite the down day in the market, Autoliv ( NYSE: ALV ) held up nicely above its 8-day exponential period moving average, that’s the orange line here on the chart. It looks like it had a really nice earnings gap and has so far held that gap.
Now, that is relative strength, and typically in a weak market, like we had today, you want to focus on stocks that have relative strength. Stocks where the sellers aren’t really aggressive despite the overall market. And so this is definitely one that I think is worth watching here.
If I bring out my little handy drawing tool, you can see it has a bit of a flag pattern here. A downward sloping trendline and then some higher lows as well. So it is kind of pinching right along this 8-day exponential period moving average.
Now, what I would like to see from this stock, obviously, is a move higher above this high here. Maybe around 105.60 is where I would have my alert. And then, of course, you would want to have a stop loss right under this 8-day exponential period moving average for swing a trade.
This is definitely a stock that I think is worth watching, if only because of its clear relative strength, versus the rest of the market. There is a lot of red on the screen today. And this one, although it did have a bit of a red day, it didn’t really sell off that much.
So Autoliv ( NYSE: ALV ) is on my watch list and I think it is worth adding it to yours.
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