Why You Should Expect a Significant Move in Shares of Aaron's (AAN)
September 18, 2020 at 06:00 AM EDT
There is an ascending triangle pattern in the chart of Aaron’s Inc. (AAN). The stock could either break through a key resistance level or crash through a trendline of support. Learn when to enter a position.
An ascending triangle pattern has formed in Aaron’s Inc. (AAN). That means, not only is there a key resistance level in the chart but also a trendline of support.
AAN is a retailer of furniture and consumer electronics. The company retails televisions, computers, tablets, mobile phones, furniture, mattresses, washers, dryers, and refrigerators. AAN had a strong quarter driven by strong invoice and e-commerce growth, operating cost management, and solid customer payment activity.
Take a look at the 1-year chart of AAN below with added notations:
Chart of AAN provided by TradingView
While climbing a clear trendline of support (green), AAN has also formed an important level of resistance at $60 (red).
At some point, one of those lines will break and likely dictate the stock’s next, bigger move. A trader could buy AAN if/when it crosses $60, with the expectation for a breakout. Or a trader could short AAN, if/when it crosses under the trendline support, with the expectation for a breakdown.
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Christian Tharp, CMT
AAN shares were trading at $56.87 per share on Friday morning, up $0.12 (+0.21%). Year-to-date, AAN has declined -0.05%, versus a 5.00% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp, CMT
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock.Why You Should Expect a Significant Move in Shares of Aaron's (AAN) appeared first on StockNews.com