Let’s look at the one of the best growth stock First Merchants Corporation (FRME) technical chart analysis using it’s weekly stock chart, as it’s trading close to its buying price, April 28, 2017.
#2 – The stock was under long consolidation for most part of last year.
#3 – The stock had a solid run after the consolidation.
#4 & #5 – The stock went into a quick consolidation, followed by a quick run up.
#6 – The stock found support at the 50 day moving average line during the great run up.
#7 – The stock appears to be another consolidation, now.
#8 – The stock lost the key 50 DMA support, but quickly recovered.
#9 – The volume was heavy during the run up. But , now below average during the consolidation.
#10 – The stock may offer a nice buying opportunity when it clears this consolidation.
The ideal buy point would be $42.27 – $44.38.