Accenture Pops With Earnings Buy Signal (Technical Analysis)

Summary:

• Accenture shows multiple Buy signals, including a post-earnings pop, MACD crossover, and Golden Cross, indicating strong bullish momentum.
• The stock appears on our daily “Surprises” report with fundamental and technical Buy signals, suggesting high demand and positive price action.
• Despite a weak SID score, technical indicators lead, showing improvement and potential for growth, justifying its addition to our Model Portfolio Watchlist.
• Both SA and Wall St. analysts rate ACN stock as a Buy, reinforcing our confidence in its bullish outlook despite weak Quant ratings for Growth and Valuation.

Accenture (NYSE:ACN) pops with a post earnings Buy signal in price, along with other Buy signals that you can see on the chart below. We will wait for our buy-on-weakness signal to add it to our Model Portfolio. Here is the chart showing all the Buy signals:

At the top of the above chart is the blue line buy signal we use, and you can see it was triggered just before the big post earnings pop Buy signal. We thought price would pull back to fill the big gap up. However, instead we have a bullish breakaway move higher.

In addition, we have the MACD crossover Buy signal confirming our blue line buy signal. Chaikin money flow is in the green. Also, ACN just switched from underperforming to outperforming the Index. At the bottom of the chart, you can see how high Demand has moved on the ADX signal.

Finally, there is another price buy signal called the Golden Cross. It occurs when the 50-day moving average breaks out above the 200-day moving average. It is a little difficult to see the crossover of the green line above the red line that is moving sideways, but if you go to box up on the left, you will see that the price for the 50-day at $336 is higher than the price for the 200-day at $332.

As you might expect, ACN also appears on our daily “Surprises” report that we email to subscribers. Here is this stock picking report, and you can see all the Buy signals we have for ACN. There are our fundamental Buy signals in the Implied Return and Fund columns, and they are color coded green.

We also have technical buy signals in the Tech column as well as the D:S column which is color coded green. The D:S column shows Demand at the D7 level, and that tells us buyers are chasing price. The highest Demand level is D9. In addition, our Stop & Reverse or SAR signal is also a “B” or Buy signal.

Our most important signal is our SID signal, and it lags the leading technical Buy signals because it includes fundamentals. Buyers are anticipating an improvement in fundamentals. You can see that our SID score is still a weak Sell signal at 59 but becomes a weak Hold signal at 61. We know that technical buy signals occur well ahead of our SID signal, especially when a stock has sold off and is now showing improvement with a Golden Cross technical Buy signal.

Here is our Surprises report showing these fundamental and technical buy signals for ACN:

NOTE: The above “Surprises” report includes stocks with negative surprises, and they will show sell signals, not buy signals like ACN. See the negative price change in STZ and the sell signal in SAR.

In conclusion, we do our due diligence by checking with SA analyst and Quant ratings. Both the SA and Wall St. analysts have a Buy rating. So we feel confident in the positive Buy signals we are seeing on the chart in our own Surprises report. The SA Quant rating is a Hold, and our own SID rating is almost a Hold. The Quant ratings are weak for Growth and Valuation, and growth really needs to improve. Buyers think it will. We think it will and that is why we are putting ACN in our Model Portfolio Watchlist.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ACN over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: We are not investment advisers and we never recommend stocks or securities. Nothing on this website, in our reports and emails or in our meetings is a recommendation to buy or sell any security. Options are especially risky and most options expire worthless. You need to do your own due diligence and consult with a professional financial advisor before acting on any information provided on this website or at our meetings. Our meetings and website are for educational purposes only. Any content sent to you is sent out as any newspaper or newsletter, is for educational purposes and never should be taken as a recommendation to buy or sell any security. The use of terms buy, sell or hold are not recommendations to buy sell or hold any security. They are used here strictly for educational purposes. Analysts price targets are educated guesses and can be wrong. Computer systems like ours, using analyst targets therefore can be wrong. Chart buy and sell signals can be wrong and are used by our system which can then be wrong. Therefore you must always do your own due diligence before buying or selling any stock discussed here. Past results may never be repeated again and are no indication of how well our SID score Buy signal will do in the future. We assume no liability for erroneous data or opinions you hear at our meetings and see on this website or its emails and reports. You use this website and our meetings at your own risk.I

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

To understand completely our fundamental and technical approach to making money in the stock market read my book “Successful Stock Signals” published by Wiley. This is the method that I taught to professional portfolio managers on Wall St. and now I share these secrets with you with 50 stock picking programs picking winners every day. You receive our daily email of stocks with Buy Signals before the market opens.