Array Technologies Chart
After rising to a Nov. 15 high of $27.67, Array Technologies began a period of consolidation. Within the consolidation, the stock has settled into both a bull flag and a triple inside bar pattern.The bull flag pattern has been created between Nov. 10 and Wednesday with the pole formed between that date and Nov. 12 and the flag created between Nov. 15 and Tuesday. The measured move if the bull flag is recognized, calculated by adding the length of the pole as a percentage to the bottom of the flag is about 39 percent which indicates Array could trade up toward the $36 mark at some point in the future.
The flag of the pattern is also a triple inside bar, with the mother bar formed on Nov. 15 and the inside bars formed on Monday and Tuesday. The pattern is considered bullish because the stock was trading higher before forming the inside bars. Traders can watch for a break of the pattern on high volume to confirm the pattern has been recognized.
Array’s relative strength index (RSI) is running hot at about 70 percent, which could indicate further consolidation is needed before a move higher. When a stock’s RSI reaches or exceeds the 70 percent level it becomes overbought, which can be a sell signal for technical traders. It should be noted, however, that the RSI can remain extended for long periods of time.
Array is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.
Bulls want to see a break from both the bull flag and inside bar patterns on high volume. The stock has resistance above at $27.67, $28.62 and $30.56.
Bears want to see big bearish volume come in and knock Array down below the eight-day EMA, which will negate the bull flag. The stock has support below at $26.33 and $23.14.
![(Benzinga)](/_next/image?url=https%3A%2F%2Fimg.theepochtimes.com%2Fassets%2Fuploads%2F2021%2F11%2F19%2Farry_nov._18.jpg&w=1200&q=75)