Let’s look at $TEAM – November 21, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at Atlassian ( NASDAQ: TEAM ).
TEAM ( NASDAQ: TEAM ) is in an interesting pattern here. If I zoom out we can actually see a pretty long cup, and now it’s trying to build a handle. It’s not really a cup and handle but it is in a definite cup situation where we have a break under the 200-day moving average.
But then, a pretty quick recovery back to the highs, probably due to earnings they had some positive earnings report. Their next earnings report isn’t until 2025 so that’s out of the way, something we don’t have to worry about. But what I like about this chart, what I like about this stock is the fact that we are getting some consolidation right near some previous highs.
What I want to see from Atlassian ( NASDAQ: TEAM ) is, I’d love to see this handle out. I’d love to see that handle go sideways, and build a tight base of consolidation right under resistance right around that 257.00 level. And then, I’d like to see this stock break above that level and do it on volume.
So If I were you and I’m looking at this chart for the first time, I’d probably want to have an alert right around that 257.30 level or just underneath. I’m going to create an alert here on TradingView and then look for a strong move through that level, coming on volume.
Now, whether or not we get a cup or not doesn’t really matter to me. But we want to see at least a little consolidation just to establish that we have some high support because this stock is pretty elevated above that 50-day moving average.
We can see it’s in and around 30 percent above the 50-day. Longer-term support is quite low so we want to establish high support and that means usually some consolidation or sideways price action right under resistance.
Free Chart