Bill Holdings At A Crossroads: What's Next For The Stock?

Bill Holding (NYSE:BILL) is currently navigating Phase 7 within the Adhishthana Cakra formation on the weekly charts, and it has reached a crucial juncture. The next few trading sessions will likely decide whether the stock sustains its structure or slips into a bearish setup. Here's what investors and traders should track.

Analyzing Bill Holdings' Weekly Chart Formation

According to the Adhishthana Principles, stocks typically form a Cakra structure between Phases 4 and 8. This formation, often resembling a channel with an arc, generally carries bullish implications. A clean breakout in Phase 9 marks the beginning of the Himalayan Formation, a phase known for strong and sustained rallies.

Bill entered its Phase 4 in January 2023 and has since traded within its Cakra. The stock now sits in Phase 7, hovering near the lower arc of this formation.

From this point, two outcomes are possible:

1. A bullish reversal from the lower bound of the Cakra, allowing the stock to gradually move higher through Phase 8 before breaking out in Phase 9. Similar to what Castle Biosciences is doing.
   
2. A bearish breakdown below the lower bound (arc), triggering what is known in the framework as the Move of Pralaya. Similar to what Builders FirstSource recently did.
   

As outlined in Adhishthana: The Principles That Govern Wealth, Time & Tragedy:

"When the underlying breaks the Cakra on the flip side, consolidation typically extends into the Guna Triads. The move that follows is highly significant, and selling pressure can be extremely strong. This is called the Move of Pralaya."

If this breakdown occurs, the stock's outlook would turn decisively bearish.

Currently, the lower bound of the Cakra, roughly between $35–40, acts as a key technical parameter. The stock has already taken support on this arc six times, emphasizing its structural importance. Phase 9 begins in June 2026, meaning the true bullish breakout phase is still months away.

Investor Outlook

With the Cakra structure in play, Bill quite literally sits at a crossroads.

• For current holders, the lower arc of the Cakra should be treated as a critical level. If it breaks the arc decisively, the stock could enter a bearish stretch, and hedging through options may be prudent.
  
• For potential buyers, if the stock holds this support once again, it could offer a good risk-reward opportunity for a move toward $75–80 (the higher end of the Cakra) before a possible Phase 9 breakout.
  

While institutional positioning remains overweight, suggesting valuation comfort at current levels, investors must remember that the decisive breakout is still a few months away. Until then, the stock's next move will hinge on how it behaves around the Cakra's lower arc. 

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.