Icahn Enterprises L.P. (Nasdaq: IEP) is a common name in many commercial industries in the United States and internationally. Icahn deals in the automotive, pharmaceutical, food packaging, home fashion, energy, and real estate spaces through its subsidiaries.
Currently, the stock is at a critical point, at which whatever happens could determine what happens to the stock for a while. And the question on the minds of many stock traders is this:
Is Icahn stock a buy now?
Here’s what the IEP stock chart says:
Supports and Resistances
IEP currently rests atop the $45.2 – $51 support level. This support level is very resilient, as the price tested it multiple times as a resistance level between 2009 and 2012 before a breakout turned it to a support level. Since then, it has repelled the stock multiple times.
Another level of importance on the Icahn stock monthly chart is the $73.4 – $79.2 resistance level.
Signals and Forecast
As the IEP stock sits above the $45.2 – $51 support level, it is good news for potential buyers of the stock because stock prices tend to bounce back from support levels.
However, there’s a bit more complication with the IEP stock. The price has witnessed a series of lower highs without lower lows. Technically, IEP stock is not on a downtrend, but instead, it looks to be squeezed between the $45.2 – $51 support level and the trendline.
There are two scenarios from here. The stock could either break out of the trendline or break below the support level. A breakout from the trendline is a bullish signal, while a breakout from the support level would be a bearish signal.
Another possibility is that the stock breaks out of the trendline but continues ranging between the $45.2 – $51 support level and the $73.4 – $79.2 resistance level. While long-term growth investors may find it frustrating, short-term traders might see this as an opportunity to buy-low-sell-high.
Should you buy IEP stock right now?
There’s too much uncertainty around the IEP stock right now. But what is certain is that the stock will soon decide whether to go bullish or bearish. Until then, we recommend you hold IEP stock.
