EFX DCA - Inverted H&S Company: Equifax Inc.
Ticker: EFX
Exchange: NYSE
Sector: Industrials
Introduction:
Hello, and welcome to this technical analysis! Today, we're exploring the daily chart of Equifax Inc. on the NYSE. We observe an intriguing pattern within a pattern: a shorter-term head and shoulders continuation pattern nested within a longer-term inverted head and shoulders formation.
Inverted Head and Shoulders Pattern:
An inverted head and shoulders pattern is typically recognized as a bullish reversal pattern, often signaling a transition from a downtrend to an uptrend.
Analysis:
Equifax's price action has been forming an inverted head and shoulders over the past 411 days. The horizontal neckline, which currently acts as resistance, is around $223.50. Despite the lack of symmetry between the shoulders, the right shoulder being higher than the left is often considered a positive sign.
Interestingly, the right shoulder itself contains a shorter-term head and shoulders continuation pattern that has been forming for about 188 days. It's worth noting that the price remains above the 200 EMA.
Aggressive traders could have already positioned themselves with the break of the right shoulder at the head and shoulders, but for the conservative ones, we are patiently waiting for a break above the horizontal neckline.
The price target for the inverted head and shoulders pattern is $300.84, which represents an approximate increase of 34.58%. Meanwhile, the shorter-term pattern suggests a price target of $257, or around a 22.77% increase.
Conclusion:
The daily chart of Equifax Inc. presents an intriguing situation where a short-term head and shoulders pattern forms within a longer-term inverted head and shoulders. A confirmed breakout above the neckline could signal a bullish reversal and offer a promising long position entry.
As always, it's crucial to perform your own due diligence and employ suitable risk management strategies before making any investment decisions.
Thank you for tuning into this analysis. Please remember to like, share, and follow for more market insights. Happy trading!
Best regards,
Karim Subhieh
