INTU rose above its steep 8-month downtrend line 2 weeks ago. After a huge breakout rally, INTU is down a quick 5% in 3 days and is right at support from the breakout price level. INTU is still down 40% in 8 months. The weekly chart reveals that the recent low was a bounce from support from the 200DMA. INTU bounced off of the 200DMA in March 2020 before it rallied 250% in 1 ½ years.
- OKTA rose above its 8-month downtrend line at the end of June. OKTA fell 70% from the December 2021 highs to the May 2022 lows. The zoom chart shows that OKTA has now formed a very positive technical pattern called an ascending triangle; higher lows with a temporary resistance line that will ultimately be overcome. This is normally a powerful pattern. OKTA is also moving higher from long-term support at 85 (weekly chart).
RRG analysis shows that:
- XLK (TECH) and CLOU (Cloud computing) are moving toward the Leading quadrant from the Improving quadrant.
- OKTA, which had moved far away from the RRG center, has moved out of the Lagging quadrant and should follow CLOU and XLK toward the Leading quadrant.
Relative Rotation Graphs (RRG) – explanation video
PCOR The zoom chart shows that OKTA has now formed a very positive technical pattern called an ascending triangle; higher lows with a temporary resistance line that will ultimately be overcome. This is normally a powerful pattern. The 1-year chart reveals that a breakout from the 8-month downtrend set up the ascending triangle and has potential for a large rally.
