In today’s edition of the Daily Stock Report, we are going to provide an update on Accenture PLC (ACN). The last time we highlighted Accenture in our commentary was four months ago on May 7, 2025. Back then, the shares were deeply entrenched in the red unfavored zone of many of the reports it was found in on the SIA Platform including the SIA S&P 500 Index. The SIA Platform issued a red unfavored zone signal back on April 1, 2024, at a price of $339.17.
At the time of our last commentary on May 7, 2025, the shares were at $303.80 which represented an approximate 11.6% drop in price since the red unfavored zone signal, which may not seem like much but when you compare the S&P 500 Index return over this same time frame, the index returned a positive 7.4%. Fast forward to today, we see the bottom has fallen out of the shares as the price is now at $238.54, which represents an additional 27.3% drop since the May 7, 2025 closing price. This represents a total decline in price of 42% since April 1 of 2024. This highlights the importance of staying away from investments in the red unfavored zone. Capital preservation and avoiding portfolio destruction are important concepts at SIA. Many advisors may instinctively look for names in the unfavored zone with the mentality that the shares are oversold and a “value buy” is in play. However, “value buys” may in fact be “value traps” and the shares may continue to fall further in price which is in fact what has occurred here.
In looking at the candlestick chart we see the shares hit a ceiling in December of 2021 and February of 2025, at the $385.00 area proving to be formidable resistance. Since February, we see a steady pattern of lower highs and lower lows which is still intact today. Currently, the shares are approaching an important inflection point at around $235.00 as support seems to have held here multiple times over the last three years since that initial price point held in October 2022. This will be an important level to watch to see if the shares can find support here once again. Resistance may be found at the short but brief rally at $260.00 which occurred earlier last month.
Let’s dive in and see what the Point and Figure Chart looks like today. Once again, the picture has not changed with a consistent pattern of lower highs and lower lows since the beginning of the year. In May’s update we identified support levels at the $280.00 area which has failed to hold. As such the downward trend is still firmly intact as a new lower low materialized in July. In Point and Figure Charting, you can identify more precise support levels to watch. Currently the shares are approaching a key upcoming support level which looks to be the $232.74 to $237.40 area. Failure to hold support here, will lead to a new lower low with next support at $223.70 and below that, potentially all the way down to the $198.64 level which aligns very closely with the $200 round number and the long-term uptrend (green) line. To the upside, resistance is at its 3-box reversal of $262.11 and above that, the $283.71.
The shares currently exhibit a negative Spread Triple Bottom Pattern. With a SMAX score of only 2 out of 10, Accenture is not exhibiting much near term strength against the asset classes and also has a negative sector backdrop as the Diversified Services Sector is ranked unfavored with SIA Market Sector Report.
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