AI and Robotics stocks are fast approaching a significant event, particularly the first week of January 2024. When we mention a significant event, we obviously refer to a ‘chart event’ because, in the end, the chart is all that matters, it reflects the decisions of AI stock investors, not their opinions. Start with the chart, is our mantra. The sector’s ETF chart reveals a unique alignment of three crucial chart patterns. This convergence, set to climax on January 5th, 2024, promises a moment of truth, laden with suspense and potential volatility. AI & robotics stock investors must stay focused on January 5th, 2024, and the message that the chart will send them in the 72-hour time window around Jan 5th (between January 3d and 10th, 2024).
Our Nasdaq 20-year chart combined with the Dow Jones 20-year chart were confirming a bullish period to start soon, is what we wrote a few months ago. It seems confirmed now.
As we prepare for the market to print new all-time highs in 2024, the question is really which sectors will lead the market higher. More interestingly, which sectors will outperform their peers. It might be AI & Robotics stocks, for sure.
AI & Robotics stocks: the chart patterns
The Rounded Reversal: At the heart of the suspense lies a large rounded reversal on the chart, signaling a bullish turn of events. This is a 24-month pattern, it’s significant, large and strong, dominant for sure.
Note, however, that the AI & Robotics sector has 2 rounded reversal patterns, a larger one (the one that we are tracking) and a smaller one (which completed in June/July). There is always a possibility of an even larger rounded structure to emerge in case price moves below the current pattern.
The Triple Intersection: A remarkable aspect of this scenario is the intersection of three key patterns, visualized with the small circle and the yellow horizontal line:
- First, a horizontal level, acting as a crucial support or resistance zone.
- Second, the 38.2% Fibonacci retracement level, the most bullish retracement level, the most important one after the 50% retracement.
- Lastly, a descending trendline, marking the 2-year downtrend.
The meeting point of these three patterns creates a unique and powerful confluence. It does not happen often that 3 patterns coincide. The point where they coincide comes with a lot of tension, larger moves are expected, in a period of 3 days before/after the specific date.
AI & Robotics stocks: Timeline findings & impact
Decisive Date: January 5th, 2024, emerges as the D-day when these three patterns converge, represented by the yellow vertical line on the chart. This date holds the promise of heightened market activity and potential directional movement. The proximity of these patterns suggests that the tension building up on the chart will find release around this date.
Potential Volatility: Such a convergence of patterns, especially on a specific date, is like a coiled spring ready to unleash its energy. Investors should brace for increased volatility, with the potential for sharp price movements in either direction. The market sentiment in the days leading up to and following January 5th will likely set the tone for the near future.
Combining Forces
As these chart patterns will coincide, it becomes clear that we’re on the verge of a pivotal moment for AI and Robotics stocks. The rounded reversal hints at a changing sentiment, while the triple intersection underscores a battle between buyers and sellers at a critical juncture. Investors must pay close attention to how these patterns play out between January 3d and 10th, 2024.
Conclusion
In the sector of AI and Robotics stocks, the charts are signaling a momentous event. The triple intersection on January 5th, 2024 is more than a technical thing; it has the potential to become a game-changer. Investors are advised to stay vigilant, as the market prepares for a showdown that could shape the trajectory of AI and Robotics stocks in the early days of 2024, certainly for the month of January and maybe even February. The real question is, which side of the chart will emerge victorious?
Follow our work in Momentum Investing as we follow up AI & Robotics stocks in detail, nearly every week.
