FactSet Research Systems (NYSE: FDS) is a financial data and software company providing financial information and analytic software for investment professionals in the United States, Europe, and the Asia Pacific.
Shares of FactSet dropped 11% following the release of fiscal its fourth-quarter financial results despite beating analysts’ forecast. Revenue climbed 5%, lifting adjusted net income by 19% from year-ago levels and adjusted earnings per share for the period rose 18.6% year over year . However, the management’s outlook for fiscal 2020 was softer than expected.
In today’s article, we’ll take a look at the technical structure of the stock using the Elliott Wave Theory.
Shareholders have enjoyed a nice 6 Month run higher from December 2018 low until June 2019, as the stock rallied within an impulsive 5 waves advance breaking to new all time highs and opening further extension for the stock. From $305.3 peak, FDS started a correction lower which unfolded as 3 waves Zigzag Structure which managed to reach the equal legs area $246 – $219.
The blue box presented in next chart is a High-frequency area where the Market is likely to end cycles and make a turn, Consequently, we expect FDS to find support around that extreme area to resume the main bullish trend or at least bounce in a larger 3 waves. The key level would be a break above June 2019 peak to confirm the start of a new bullish cycle similar to the one from December 2018 low.
FDS Elliott Wave Chart
Despite better than expected results from earnings, FDS saw a sharp decline which made shareholders worry about the outcome of the company. However, the stock is showing a bullish structure supporting it to remain above $188 and it can aim again for new all time highs.
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