Accenture (ACN) bottoming out?

Question: Accenture (ACN) trying to break out of a downtrend. Positive MACD div + potential dbl bottom + cheap on valuation. potential wedge structure?

Should we "bottom-fish" Accenture (ACN)?

There could be something positive brewing on Accenture (ACN) related to the patterns cited - the wedge, double bottom, and positive divergence. A similar setup occurred in 2022, which led to a temporary rally before ACN dropped again to form a larger double bottom near its rising 200-week moving average. The key difference now is that the 200-week moving average is sloping downward, suggesting a more cautious backdrop.

Tactically speaking...

• A move above 254 would break the wedge downtrend line and the declining 13-week moving average.

• A decisive rally above 262.15 would confirm the developing double bottom pattern.

• The wedge and double bottom lows align with the lower boundary of a downward channel that began in late 2021.

• First resistance is seen near 275–278.69, followed by retracement targets from the February–September decline at 293.93 (38.2%), 313.87 (50%), and 333.81 (61.8%).

• Declining 26-, 40-, and 200-week moving averages at 277.92, 300.06, and 312.27, respectively, mark additional resistance levels.

• Key support sits at the potential double bottom zone of 236.67–229.40.

If Accenture’s fundamentals begin to turn constructive, the current technical setup supports a tactical bottom-fishing attempt. However, the declining long-term trend suggests that patience and disciplined risk management are essential.

Chart 1: Accenture (ACN) (top) and MACD Histogram (bottom)

Key risks

• A weak trend for ACN vs. the S&P 500 (SPX)

• Declining 200-week moving average

• A bearish cross for the 40-week moving average below the 200-week moving average.

Chart 2: Accenture (ACN) (top) and ACN vs. SPX (bottom)