Trade of the Day – Thermo Fisher Scientific Inc (NYSE: TMO) February 1, 2024 97

Trade of the Day

Thermo Fisher Scientific Inc (NYSE: TMO)

(Current Price: US$538.98) – TECHNICAL SELL

Sell price: US$538.98     Stop loss: US$566.00 (-5.01%)    

Take profit 1: US$498.00 (+7.60%)     Take profit 2: US$475.00 (+11.87%)          

 

 

(1) & (2): Thermo Fisher Scientific Inc retested the downtrend resistance line and closed with a bearish candlestick, forming a bull trap with a breakdown below the US$559 level and a short-term uptrend support line as well

(3): The bearish price action is supported by bearish divergence signals on both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) technical indicators, indicating a potential bearish reversal

(4): We believe should the price continue its bearish momentum, it could head towards take profit level 1 at US$498, which was a previous horizontal resistance breakout level in December 2023 and confluent with a 50% Fibonacci retracement level

It could then head lower towards take profit level 2 at US$475, confluent with a 61.8% Fibonacci retracement level. The Fibonacci retracement levels are calculated using the swing high of US$570 and swing low of US$415.32

Expected timeline of the trade is 2-12 weeks from the date of report issuance

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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