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May 07, 2023
- $2.87 is Dolby Laboratories's largest daily jump in 7 weeks.
- Market price breaks $1.23 above key Fib handle of $83.46
Having closed Thursday at $81.82, bullish sentiment helped Dolby Laboratories to reach highs around $84.8 before paring gains and ending Friday at $84.69.
The stock has been trending positively for about a month. This year has been a bright one for the US audio specialist after trading as low as $63.44 and going on to appreciate by 20% year to date.
Trend analysis indicates that Dolby Laboratories, Inc. made an initial breakout above its 50 day Simple Moving Average at $83.2, a potential indicator of a newly emerging bullish phase. Price action overcame a known Fibonacci resistance level at $83.46 by around $1.23 with prices hammering out a $83 – $84.8 session range. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $86.6, thereby suggesting that Dolby Laboratories is becoming overvalued. Technical analysis shows that Dolby Laboratories could be slowing down soon as it approaches resistance at $85.33. Of course, crossing it might suggest further gains are ahead.
All in all, the technical analysis suggests Dolby Laboratories has no clear-cut direction.
A look at other communication services stocks also showed bullish price action as Verizon added 1.29% to its value, and traded at $37.83. AT&T traded at $17.13 after closing Friday's trading day at $16.91 (up 1.3%). Alphabet gained 0.96%, as it traded at $106.22.
