Accenture (ACN - Get Report) stock is jumping higher on Thursday, climbing 5.2% and closing at $175.12 after the company beat on earnings and revenue expectations. Shares are off the session highs, but still over its prior highs. Can Accenture continue higher?
It sure isn't out of the question after the company beat consensus expectations for this quarter and raised its full-year outlook for both earnings and revenue. Gross margin increased in the quarter, free cash flow topped $1.2 billion and its cloud bookings hit a new record of $11.8 billion.
The cloud group -- whether its Salesforce (CRM - Get Report) , Microsoft (MSFT - Get Report) , Amazon (AMZN - Get Report) , Alphabet (GOOGL - Get Report) (GOOG - Get Report) or now Accenture -- continues to see strong momentum. More and more customers are getting on board and as a result, these businesses and stocks have momentum at the moment. Can it continue?
Trading Accenture Stock
Technology consultant Accenture's stock hit a new high of $177.49 in the session, but are currently retreating in midday trading. Let's see what kind of close we get in Accenture stock and how it does on Friday going into the weekend.
Bulls would love to see this one hold up over $172.50, the prior high from late September and early October. Should it fail as support, Thursday's post-earnings low near $170 is on the table, although it's hard to see too much downside in this name considering how solid the earnings report was.
The one exception? A broader market correction. Tech and the overall market have had a big rally from the December lows and had a robust first quarter. If that draws in some profit-taking and a correction through price, Accenture stock could come under pressure.
While sentiment would be hurting in this case, so long as ACN stock stays above $167.50, the pre-earnings resistance level, and the 20-day moving average, bulls are likely OK in the name.
Should Accenture stock sidestep a decline and begin to rally, a move into the low-$180s is certainly possible. As it enters a short-term overbought condition, it may run into prior uptrend support from 2018, that turned into resistance in the fourth quarter.
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