At the start of a new trading week it’s time to catch up on several of my stock selections from last week and first up is State Street Corporation (NYSE:STT).
In last week’s analysis, the stock was trading at $72.26 and preparing to develop a bullish breakaway based on the price and volume dynamics along with a strong ceiling of resistance which is now acting as support. This level has been generated by the accumulation and distribution indicator for NinjaTrader which presents these levels according to the number of times they have been tested or retested and on each occasion, the level thickens accordingly giving us a visual map of price based support and resistance levels and their respective strength.
Last week saw the stock perform strongly and end at $76.38 per share so an excellent return, and closing with a wide spread up candle on good volume, so there is more to come for this stock. And as we can see on the chart the price action moved through the low volume node in the $75 per share region and is now preparing to push ahead into the more developed volume-based congestion at the $80 per share area, and once through this level we can expect to see the stock push on towards $85 in the medium term.