Why Accenture Stock Could be Due for a Pullback

Tech consulting firm Accenture PLC (NYSE:ACN) is stalling at the $100 billion market cap level, after failing at a 78.6% Fibonacci retracement level of its pre-earnings reaction high to the stock’s recent July lows. The stock is also rejecting the year-to-date anchored volume weighted average price (AVWAP). The $180 pivot saw a rejection as well as fakeouts in both directions in mid-May and early June.

 
Max pain rolls lower in August down to the $155 mark and is now sitting near a call stack that has potential to reject price action. This could bring down the stock to its prior gap, likely for a retest near the 50-day moving average.

 

The equity sports an Schaeffer's Volatility Scorecards (SVS) reading of 90 out of 100, suggesting ACN has realized higher volatility than its options have priced in over the past 12 months.
 
Our recommended put contract has a leverage ratio of 9.3, and will double in value on a 10.3% drop in the underlying equity.