BBD.B Stock: Making Bullish Progress
BUZ INVESTORS Bombardier Stock Breaks Out This update on Bombardier, Inc. (TSE:(BBD.B) stock has come a little quicker than I originally expected but, nonetheless, there have been new developments that must be addressed.
In my previous publication about this stock, “Bombardier Stock Is Setting Up Its Next Move,” I outlined a technical price pattern that was in development. This technical price pattern was setting up the next major move in BBD.B stock, and the completion of this price pattern would indicate the next direction in which Bombardier stock was heading.
This method of investment analysis has been instrumental in correctly suggesting the next direction of Bombardier stock since I started writing about BBD.B stock last summer.
The following Bombardier price chart illustrates the completed technical price pattern that is serving to suggest that a higher stock price is likely.
Bombardier Stock Breaks Out
The price chart above illustrates that Bombardier shares just exited a consolidation wave via a breakout.
A consolidation wave is one of two alternating waves which constitute constructive price action. The first wave is an impulse wave, and it is highlighted in green on the chart above. The impulse wave defines an advancement in the price of an investment.
The second wave is a consolidation wave, and it is highlighted in purple on the chart above. The consolidation wave defines the area where an investment sets up the necessary conditions for a new impulse wave to develop. This alternating wave structure creates the necessary ingredients for an orderly trend to develop, and remain sustainable.
The 200-day moving average was acting as a level of price support as this consolidation was in development. Investors were eager to step in and support this moving average on multiple occasions, indicating the inherent bullish strength of this investment at the time that the consolidation wave was in development.
Now that the consolidation wave is complete and I have established the direction of the next move, the question remains as to what the next logical price objective is for BBD.B stock.
The following Bombardier stock chart illustrates a significant level of price resistance which should act as the next logical potential price objective for the stock price.
The price chart above illustrates a bearish trend that has gripped BBD.B stock since it peaked at $21.85 in August 2000. This relentless bearish trend is easily captured by using the simplest of tools, a downtrend line. This downtrend line is created by connecting the peaks on the price chart. This downtrend line is what separates Bombardier shares from a true bull market.