|FIS Monthly Chart|
|FIS Weekly Chart|
Again notice the consistent bull channel that runs the entire length of this impulse wave. Right now, we're trading near the center of that channel, although we are resting on a shorter term horizontal resistance line that's held for the last six-months. A breakout from that resistance line will be an excellent indication that Wave-v is in progress, and would be a very good long entry point if confirmed on the daily chart.
|FIS Daily Chart|
This horizontal consolidation that's been running since July 2016 forms a narrowing wedge pattern, but the channel itself is ill-suited for swing trade setups. Price has not oscillated between the extremes with any consistency. The much shorter term channel - in magenta - does show more promise since there were three touches to both support and resistance since late November 2016. Last Thursday's candle was a retest of support, and that was rejected on high volume. Even though the candle is red, that hammer was a very bullish indicator.
This, in fact, is the setup we are looking to take. Friday's candle offered confirmation of the price rejection, at least in the short-term. Going long just above the high of Friday's candle with a stop below the rising support line offers a good setup. The rising resistance line offers a good exit opportunity, although we may also want to allow at least half of the position to continue to run since Wave-v should initiate soon. It would be nice to catch that wave if we see the setup in time.
Be aware that FIS reports earnings before the open on 7 February. They are expected to trade ex-dividend in late March, so that should not have any bearing on our trade horizon. Do be aware of the earnings date, though, if we attempt to ride the crest of Wave-v.