Don't Ignore This Chart

Fiserve Shows Resilience with Move into Gap Zone

Fiserv gapped down and fell on big volume last week, but the candlestick points to an accumulation day and the Accumulation Distribution Line hit a new high. First and foremost, the big trend is up because Fiserve hit a 52-week high with a move above 130 in late October. FISV then gapped down with an open around 124 and closed lower on the highest volume of the year. Despite the lower close, I think this was an accumulation day because the stock dipped below 121 during the day and closed near the high of the day. This candlestick looks like a massive hammer and the ability to close near the high of the day shows accumulation. This is reflected in the Accumulation Distribution Line (ACDL), which surged to a new high on this reversal day. Check out the ChartSchool article to learn why? I will give you a hint. This indicator measures the close relative to the high-low range to measure accumulation and distribution. Given the bigger uptrend, the hammer and follow through over the last few days, I would expect Fiserve to continue its uptrend and record a new high in the coming weeks. 

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--Arthur Hill CMT

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