ADI in strong bullish channel

It’s interesting to follow ADI’s – Analog Devices, Inc. – reversal from downtrend to uptrend, through the blue box you can see in the chart.

The first indication of the reversal was in late May, when price lost its bearish momentum, moved away from the lower Bollinger Band and eventually crossed over its 10-day exponential moving average. This reversal phase in marked in the brown box.

At about the same time MACD turned up and crossed above its signal line.

Then, in the second phase of the trend reversal, price hesitated along its 50-day exponential moving average and just below the upper Bollinger Band. This is the green box, number 2, in the chart.

The bullish trend matured in the 3rd phase – the orange box – where price reached the upper Bollinger Band and started moving up along the upper Bollinger Band is a strong bullish trend.

Throughout this trend reversal, ADI’s Relative Strength moved up and above its 20-day exponential moving average, which is currently rising as well.