$54 Is A Magnet Price For Intuit(INTU)

Posted by barkand on June 2, 2011 under Candlestick charts, Price trends | Be the First to Comment

As a reminder for those who slept through physics class, magnets both attract and repel other magnets. And Intuit (INTU) can not decide if it wants to be attracted to, or repelled by, the $54 level. Starting in February, the share prices have done both quite a few times. And this week once again prices went right to $54 and were again repelled.

The most interesting instance of this was the relatively rare ”separating lines” on May 20 & 23 (a Friday and Monday). Separating lines occur when the price opens at nearly the same place on two consecutive days, but then travel in opposite directions. On the 20th, INTU opened near $54 and then ran toward $55. On the following trading day, they once again opened at $54 but then closed below $53. Usually, this pattern would indicate the continuation of a trend. But in this case what is the trend? At the time of the separating lines, ADX was well below 20 and confirms what we see with our eyes: there is no established uptrend or downtrend.