Global Payments Inc (GPN), provider of electronic transaction processing, information systems, and services, from a long-term perspective trades in well-defined and fairly lengthy swings.  From a swing trader’s point of view, this thus makes for an attractive stock to follow.  The stock’s sharp, close to 100% rally off the early 2009 lows re-tested a previous all-time high level from March 2006 around the $54 area, has however since not been able to break to loftier levels.  In fact, since the stock’s reaction high in late 2009, it has re-tested the $54 area twice more, and while getting rejected each time, did manage to pull itself together at a higher respective low each time.  In other words, from a multi-year point of view Global Payments Inc (GPN) has now bumped up against this major resistance area of $54 no less than four times, and since 2009 has displayed the at the margin bullish pattern of creating higher lows.  Ultimately, stocks that develop higher lows versus clearly-defined resistance areas stand a good chance of significantly breaking past resistance.

gpn weekly

On the daily chart note that Global Payments Inc (GPN) has steadily worked higher off the June lows with a series of mini consolidation phases that on Monday pushed the stock past a first resistance line dating back to the May highs at $48.90.  As the stock works itself toward the long-term resistance area at $54, it has two more reference levels that traders can focus around, namely $49.90 and $51.  While I don’t expect this to happen in a straight shot, the stock now looks to eventually work itself toward $54 again, and as mentioned above, ultimately stands a good chance to break to new multi-year highs.  Important to note is that the company is scheduled to report earnings his Thursday July 25th.

gpn daily

 

 

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