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Fan Yang

Seagate Technology (STX) Breaks Key Resistance and Puts $50, $57 in the Bullish Scope

Recently we noted that Seagate Technology $STX was in testing a key resistance at $46 threatening a bullish breakout after a period of consolidation. The market started the week, Monday (6/24) with that breakout.

STX Daily Chart

(click to enlarge)

Price Bottom:
- Let's go back a little to the end of 2018 and beginning of 2019.
- Price action made one more lower low, but was really shifting sideways.
- The $46.35 level was key resistance, and price broke that in late February. 
- We can interpret this breakout as a completion of a price bottom.
- Price extended but found resistance around $50.60 before falling back into a correction/consolidation channel.
- Price choppily retreated to about $42. the fact it held there was a good sign.
- Subsequently, the current bullish breakout above a confluence of resistance at $46.30 confirmed the previous price bottom and the current bullish outlook.
- I think we can at least expect some bullish outlook in the short-term towards the $50-$50.60 resistance.
- At this point, I think holding above $46 would be a good sign for the bullish outlook with the $56-$57 support/resistance area in sight.

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