Update:
ARM has displayed significant price action suggesting potential reaccumulation:
1. Nov 7: High-volume daily candle with a high of $154.65 and a low of $139.51, signaling strong interest or selling absorption near $139.51.
2. Price declined to a low of $126.36 on below-average volume, indicating a lack of aggressive selling.
3. Dec 13: Price recovered to $156.40 on above-average volume, surpassing the previous high of $154.65, suggesting renewed buyer control and potential breakout behavior.
Key Levels to Watch:
Support: $139.51, $150.95 (high-probability demand zones).
Resistance: $156.40.
Action Plan:
Look for a sustained breakout above $156.40 with strong volume for confirmation of bullish continuation.
Monitor pullbacks to $150-$154; light volume on these dips confirms healthy reaccumulation.
Wait for further confirmation; ensure risk is managed tightly near these critical levels.
Stay alert—this may signal the start of a new uptrend if buyers maintain control.
(The Blog below was originally written on Sept 25th, 2024)
In the world of tech stocks, some companies fly under the radar, yet hold immense growth potential. One such company is ARM Holdings, a British firm that has been described by The Independent as an "unknown tech giant" and by The Guardian as "Britain's most successful tech company you've never heard of."
Its CEO has even stated that ARM is "one of the best-kept secrets in the industry."
After being off-limits to investors for eight years, ARM is now poised for a significant transformation.
ARM's Legacy and Potential
Founded over 38 years ago, ARM began as a small team of eight computer scientists in Cambridge, racing to develop what would become one of the most revolutionary microchip designs in history.
This design laid the foundation for the Central Processing Unit (CPU), a critical component driving most of today’s computing power.
ARM's innovative architecture is present in billions of devices worldwide, and its influence continues to grow, especially as AI technologies expand.
Now, ARM is on the cusp of major announcements that could propel it into the spotlight like never before!
With advancements in AI and collaborations with various governments and organizations, the company's future looks bright.
As the world increasingly relies on ARM's technology, there’s an exciting opportunity for investors to get in on the ground floor of a company that could experience exponential growth.
Technical Analysis: Understanding the Current Price Action
Currently, ARM is trading at $143.30, but it’s essential to recognize that the stock is navigating a corrective cycle, after a bullish uptrend. While there may be temporary upticks in price as part of the corrective price action, we must consider the broader context.
Significant resistance exists around the $153.57 mark, which aligns closely with the 0.618 Fibonacci level for this particular setup.
Should the price rise further, it could reach between $167.02 and $188.75 and remain in this corrective price action structure, before a potential further price decline.
Price Zones of Interest:
Current Price Action: ARM’s price is at $143.30 as of the market close on the 24th of September '24, but it’s important to watch for potential corrections now.
Key Price Zone: There are critical support levels to consider, particularly the $100 mark, where strong institutional liquidity has historically been present.
Dark Pool Levels: The largest 365-day institutional levels that we see from dark pool institutional trading exchanges are at $67.23, (416.91M shares traded), and $160.30, (458.18M shares traded).
These levels indicate significant interest from institutional investors, suggesting that price movements can be influenced by buying or selling activities around these areas.
Patience - The Key to Successful Trading & Investing:
Given the current technical setup, it may not be the right time to dive into buying shares.
Although short-term price action could be volatile, exercising patience is crucial. There’s a strong possibility for ARM to retrace toward the $100 mark, creating an opportunity to buy at a more advantageous price.
By observing how the stock performs around these price zones and dark pool levels, investors can position themselves strategically for the long term.
Conclusion:
In conclusion, ARM Holdings represents a compelling opportunity as it prepares for a new chapter in its growth story.
While current conditions may suggest caution, the potential for significant gains exists for those willing to wait for the right entry point.
By understanding the technical landscape and maintaining a focus on long-term potential, investors can position themselves for what may very well be an opportunity of a lifetime, reminiscent of the gains seen with NVDA in 2022.
Master Class Opportunity:
Stay tuned for updates, as we run our Advanced Master Class twice a year to help you navigate exciting opportunities like this one.
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