KapStone Paper and Packaging Corp. (KS) was upgraded to "BUY" by TheStreet.com's quantitative service today so we took a look at the charts and indicators. Not surprising - the charts look bullish too. Let's take a look.
In this daily bar chart of KS, below, we can see that the rally the past five weeks or so has taken KS from the bottom of its trading range to a new high. Prices are above the slightly rising 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line has been rising since late November telling us that buyers of KS have become more aggressive. The daily Moving Average Convergence Divergence (MACD) oscillator moved above the zero line last month for an outright go long signal.
In this weekly chart of KS, below, we can see that prices are above the 40-week moving average line. The weekly OBV line has been neutral for months but could be turning up now. The weekly MACD oscillator is has turned positive again.
In this Point and Figure chart of KS, below, we can see the small double top breakout and a $37.50 price target.
Bottom line: Aggressive traders could go long KS around current levels risking below $23 looking for gains to the mid-$30's or so.