by Shane Ormond
On Feb 20, 2020
Shares of Groupon and Blue Apron tanked yesterday after their quarterly reports reignited skepticism about the companies’ “unconventional” business models. (And by “unconventional” I mean “doesn’t work.”)
Blue apron, groupon, e-trade, morgan Stanley
Blue apron, groupon
On Friday, we looked at a Keltner Channel Chart of GSX Techedu Inc. and noted that it was on a pullback from being overbought.
Today’s chart is for Aon Corp. (NYSE: AON).
Aon plc, a professional services firm, provides advisory and solutions based on risk, retirement, and health to clients. It offers commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captive insurance provider; and health solutions, such as health and benefits brokerages, and health care exchanges.
Now, the Daily Price Chart below shows that AON has been making a series of 52-Week Highs since mid-November.
Stocks in a price uptrend, as we know, do not advance in a straight line. Since we know that a stock hitting two or more 52-Week Highs is a sound indication that the uptrend has legs, we know what to watch for…
The inevitable price retracements along the way.
AON experienced periodic price pullbacks during its strong advance since November.
Traders can get a lower risk entry point after a 3 to 5% price retracement as the stock normally resumes its price up trend after such retracements.
We’ll be sure to continue following Aon Corp. as it climbs to new heights, and watching for price retracements.
Maximizing Our Profit Potential
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On January 28th, we highlighted Copart, Inc. (NYSE: CPRT), noting that CPRT had been making a series of 52-Week Highs.
If you happened to have purchased CPRT shares on that day, you’d already be up 3.09%.
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Editor, Chart Of The Day