Stock of the day: Moody's Corp

At the beginning of the year, the situation on the chart was very optimistic. MCO was having a very promising buy signal coming from the inverse head and shoulders pattern (green) and the breakout of the neckline (red). The optimism, however, lasted only for two weeks, as at the beginning of February the price reversed, canceling the bullish sentiment. The MCO drop created a false breakout (yellow) which can be considered a sell signal.

In addition, the recent mid-term uptrend that started in October was only a correction of a bigger downtrend. Why is that? The reason is that it was wedge-shaped and ended up with a bearish breakout to the downside. The price is currently below the lower line of the wedge and below the neckline, which is a confirmation of negative sentiment. The target is on the orange horizontal support of around 258 USD which was a key level in 2020 and 2022.