ACN rebounded on AI partnership news, but technical resistance at $200 and upcoming earnings make the move uncertain; a break above $200 is required for further upside.

It is Accenture. The ticker is ACN, and it's gapping up by 5.47% 47% in the pre-market on Monday after it announced a partnership to establish a team of embedded evaluators at Anthropic.

Accenture rebounds after Friday's selloff because there is an anthropic partnership and it is drawing attention. We talked a little bit about this there in the stocks to watch segment of this Accenture plc ticker ACN.

Shares rose in Monday's pre-market trading as investors reacted to a new partnership with Anthropic, focused on AI safety and model evaluation.

The rebound followed a 4.7% decline on Friday when Guggenheim downgraded Accenture to neutral amid concerns about its consulting demand.

Oops, that seemed like that was illtimed, if I do say so myself. Accenture and Enthropic announced on Friday that each expects to invest at least $1 billion over the next 5 years in AI safety.

The companies will establish a team of quote embedded evaluators end quote to work alongside Anthropics internal teams and safety partners. The team will evaluate and red team AI models.

The team will evaluate and red team AI models, conduct alignment assessments, and test safeguards as organizations deploy different AI systems.

Accenture will draw on expertise from faculty, the applied AI company it acquired. Faculty has tested models for leading AI labs and developed AI systems across government, defense, health care, and infrastructure.

It also developed the UK National Health Services early warning system during the CO 19 pandemic.

Accenture chair and CEO Julie said, quote, "Safety requires both deep technical expertise and a clear understanding of how AI is used in the real world." End quote. Dr. Mark Warner, Accenture's chief technology officer and faculty CEO, said the partnership will allow faculty to pursue embedded evaluation, quote, at a scale that can genuinely move the industry. End quote.

So, this is pretty good here for Accenture. What's it going to mean going forward? Don't think we necessarily know that yet, but I do want to take a quick peek at the stock. and Marie, I can't remember, but I'm fairly certain we did an Accenture um options trade earlier this year.

I I don't even think it was that long ago. Might have been last month, maybe the month before.

And what's notable about that is Accenture, this thing has been an absolute monster. Uh COVID into 2022, this thing made a huge run up to 400. Actually looked like it was going to retest 400 and had a pretty healthy sell-off.

Now today here we came all the way in. It does look like we kind of bottomed around 120. We had a nice bounce off of that bottom. And that bounce not only filled the gap down and retested the gap down, but we also recaptured a lot of really good moving averages.

We recaptured the 20. That trend has been higher here. We recaptured the 50 and the 100 and we back tested both of those or thereabouts. So this actually looks pretty good.

Next on deck here is the 200 and we're basically right there. We're up 4.36% here today. We're sitting at 18920. We're above the 20-day. It sure looks like next here is going to be a 200 day recapture.

And I would not be surprised at all if we trade up to that 1996. At this point, I think we could call 199 200 a significant resistance area for this stock. But I wouldn't be surprised if a we find some resistance at the 200 and b if we can actually recapture that and get a couple of closes above that perhaps we can continue this swing higher from these lows.

Now the 200 is just the first step in this because you'll notice here that basically from February to June the stock really didn't do a whole lot. It was somewhat weak and kind of leaked lower but it was basically in this zone here where it really couldn't clear anything out. top of that zone about 200, maybe a little bit higher, maybe 210 if you want to go that way.

206, 210. Um, but this is going to be a fairly key level here. Can we get above this? Can we close above this? Better still, can we build above this? That actually help for again looking for something more than just a day trade here on Accenture.

Uh, we could see a front run into earnings and then another sell-off. That news seems sus into earnings, thinking resistance is ahead also. So now earnings is in 10. That's a good point.

Earnings is in 10 days from now. All right. That's going to be October 1st. That is a Thursday before the market opens.

So Ann Marie, this is good. You're saying that the news here is sus. To me, the next step here on Accenture is going to be 200. Can we actually get above 200 prior to that earnings?

If we can't, are the earnings positive? Do they allow us to gap above that 200 area? Again, I think we're coming into a real key spot here on Accenture. The news seems good on the surface, but understandable if the timing seems suspect given uh its earnings.

Interesting chart here on Accenture. Um and it'll be interesting to see where it goes here. Um so again, 200 is next. Both the 200 day and the $200 price level is what we really need to be keeping our eye on.