Upgrade and Bullish Chart -- What More Could VF Corp. Ask For?

 | Jul 14, 2017 | 1:30 PM EDT
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VF Corp. (VFC) was upgraded by TheStreet's quantitative service today. As I have written, quantitative upgrades and downgrades get me to look at the charts and indicators of companies that I might not be as focused on and this can help me (and perhaps you, too) spot potential opportunities.

I can see an important bottom pattern on charts of VF Corp., but don't take my word for it -- let's check the charts and indicators.

In this daily bar chart of VFC, above, we can see a 10-month base pattern with a "neckline" around $58. A strong close above $58 with good volume will mark the breakout. The bottom of the "head" of the base is $48, so the distance to the neckline is $10. This $10 distance can be added to the neckline at the breakout to give us an initial upside price objective of $68 ($58 plus $10).

Prices are above the rising 50-day moving average line and the flat 200-day moving average line. We can also see a bullish golden cross of these two averages last month. The On-Balance-Volume (OBV) line bottomed in January/February and its rise confirms the price advance. The MACD oscillator has followed prices up and down this year and its next signal could well be a fresh go-long signal.

In this weekly chart of VFC, above, we can see a long downtrend followed by a base pattern. Prices are above the now-flat 40-week moving average line. The weekly OBV line is positive, as is the MACD oscillator.

This Point and Figure chart of VFC, above, shows the base pattern. There was a trade at $58.06 but it did not spark a breakout. Now it looks like a trade at $58.65 is needed. The Point and Figure price target of $68.23 matches up with the bar chart price target.

Bottom line: A quantitative upgrade and a bullish chart -- I would go long above $58.50 looking for a rally to $68, risk below $54.

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