Up until two sessions ago, Terex Corp. ($TEX) had been a very bullish stock. However, the recent sell-off could lead to another round of strength ahead. Here’s why..
The Money Zone
A two-month Higher Value relationship has formed in $TEX, which is typically bullish, especially in trending stocks. Any pull-back to the value area during a trend should be seen as a bargain entry point.
$TEX is holding right at the monthly Point of Control and the Value Area High, which makes for a great area for buyers to enter the market. If price can hold above $22, we could see buyers push price back toward the October high of $25, or higher.
Otherwise, a failure below $22 could lead to more selling pressure back toward the Value Area Low at $21.
Inside Day Relationship
Since Friday was an extremely quiet trading session on most fronts, Inside Day relationships have formed at a higher rate than usual. This means that a major breakout/trending session could be seen.
An Inside Day relationship has formed in $TEX and could offer an excellent breakout opportunity for today’s session. Watch Friday’s range ($23.10 up, and $22.55 down) for an entry.
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