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Possible Bullish Inside Day Candle Pattern Detected for Alliance Data (NYSE:ADS)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Alliance Data (NYSE:ADS) based on the price action in the company's shares. Yesterday's price range of $100.07 and $102.17 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Alliance Data may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Over the past year, Alliance Data has traded in a range of $99.20 to $214.95 and closed yesterday at $101.08, 2% above that low. The 200-day and 50-day moving averages have moved 1.08% lower and 2.61% lower over the past week, respectively.

Alliance Data Systems Corporation provides data-driven marketing and loyalty solutions worldwide. It operates through three segments: LoyaltyOne, Epsilon, and Card Services. The company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs. It also focuses on facilitating and managing interactions between its clients and their customers through various consumer marketing channels, including in-store, online, email, social media, mobile, direct mail, and telephone.

Potential upside of 159.4% exists for Alliance Data, based on a current level of $101.08 and analysts' average consensus price target of $262.23. The stock should run into initial resistance at its 50-day moving average (MA) of $122.95 and subsequent resistance at its 200-day MA of $149.14.

SmarTrend recommended that its subscribers protect gains by selling shares of Alliance Data on October 2nd, 2019 by issuing a Downtrend alert when the shares were trading at $123.40. Since that call, shares of Alliance Data have fallen 18.1%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle alliance data

Ticker(s): ADS