Manufacturer, Avery Dennison Corp (AVY), has returned to the Green Favored Zone in the SIA S&P 500 Index back on July 21, 2022, at a price of $176.03.
Today, the price of the shares are at $190.43 which is already representing an 8.2% return in less than 2 weeks since entering the Favored Zone. Currently the shares occupy the 71st spot in the S&P 500 Index, up 4 spots in the last day and up 95 spots in the past month.
In looking at the attached Candlestick chart, the shares found a bottom at approximately the $153.00 area back earlier in June. Since that time, the shares have rallied and we now see the shares have broken above a key resistance point when the price closed above the $185.00 area breaking above its downtrend line.
Next potential resistance can now be found at the $200 psychological level. Support can be found at previous resistance which is now new support at $185.00.
In the attached Point and Figure chart at a 2% scale, we see the shares bottomed out at approximately the $152.00 area which was only 1 box below the March 2022 low at approximately $155.36 indicating a classic bear trap.
In the past month the shares reversed and it’s approaching next resistance at the $197 to $200 area. If the shares manage to break above this level, next resistance is at $226.33. Support can be found at the 3 box reversal of $174.96.
With an SMAX of 10 out of 10, AVY is showing near term strength against all asset classes.
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