While analyzing charts over the weekend, I discovered a triangle pattern has emerged in the chart of ManpowerGroup (MAN).
MAN is one of the largest firms in the global staffing industry currently serving 600,000 clients and placing millions of job candidates. The company’s revenues are growing through acquisitions, cost-cutting, and price discipline.
Take a look at the 1-year chart of MAN below with my added notations:
Chart of MAN provided by TradingView
As you can see looking at the blue lines above, a triangle pattern has formed over the past several months. As the trendlines converge on each other, the pattern is created. Since there is no true way to know which way the stock will break, most traders will wait for the breakout or breakdown before entering a trade.
A trader could enter a long position on a break above the descending trendline or if the stock was to break below the ascending trendline, a short trade could be entered.
Keep a close on MAN over the next couple of weeks, as the stock reports its latest quarterly results on October 16th.
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Christian Tharp, CMT
MAN shares were trading at $75.86 per share on Monday morning, up $0.77 (+1.03%). Year-to-date, MAN has declined -20.73%, versus a 6.27% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp, CMT
Christian is an expert stock market coach at the Adam Mesh Trading Group who has mentored more than 4,000 traders and investors. He is a professional technical analyst that is a certified Chartered Market Technician (CMT), which is a designation awarded by the CMT Association. Christian is also the author of the daily online newsletter Todays Big Stock. More...
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