T ROW PRICE WILL RECOVER AT THIS SUPPORT LEVEL
T. Rowe Price is currently at a very attractive price, historically speaking, after its recent selloff. From its recent high, the stock is down 43%, but the financials are not worrying at all. The dividend yield is approaching 4%, the company's debt levels and margins are within normal bounds. PE ratio is now at around 9.82.
Aside from the financials, it can be seen that the stock is in a healthy price channel going back to the mid-1990s. The red channel being the stricter version which incorporates when bubbles occur and market-wide crashes like 2008 and 2020. However, these are the exceptions over the last 30 years, more often TROW will stay inside the gold channel, the same one it is resting on right now as support. Earnings came out today which showed that it underperformed, but no severely bad news came out. A 2% negative move is the current daily price action.
My forecast is that TROW rebounds from this gold support line in the next year and reaches the gold resistance line sometime in 2023-24, with a peak around $200-$250. I opened a small position today planning to hold onto it for 1-2 years and I will double my position if either 1) the price declines further to the red trendline or 2) if the gold trendline holds for a few months.
Aside from the financials, it can be seen that the stock is in a healthy price channel going back to the mid-1990s. The red channel being the stricter version which incorporates when bubbles occur and market-wide crashes like 2008 and 2020. However, these are the exceptions over the last 30 years, more often TROW will stay inside the gold channel, the same one it is resting on right now as support. Earnings came out today which showed that it underperformed, but no severely bad news came out. A 2% negative move is the current daily price action.
My forecast is that TROW rebounds from this gold support line in the next year and reaches the gold resistance line sometime in 2023-24, with a peak around $200-$250. I opened a small position today planning to hold onto it for 1-2 years and I will double my position if either 1) the price declines further to the red trendline or 2) if the gold trendline holds for a few months.