Accenture plc (ACN) has made a strong rally the past 12 months from below $115 to above $160. Prices have nearly doubled in the past three years. Accenture must be doing something right but can these kind of gains continue? Let's check out our charts and indicators before coming to a conclusion.
In this daily bar chart of ACN, below, we can see a parabolic-like rise from $120 in May. Prices have spent most of that time above the rising 50-day simple moving average line. Technically oriented traders waiting for a dip to this moving average to buy have been disappointed. The slower-to-react 200-day moving average line was briefly tested in July. The volume pattern has been difficult to interpret but the On-Balance-Volume (OBV) line has shown steady improvement the past year and helps to confirm the advance. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since early May -- another sign of technical strength.
All our indicators look positive right now in this weekly bar chart of ACN, below. Prices are above the rising 40-week moving average line. The weekly OBV line is trending higher and the MACD oscillator is clearly bullish.
In this long-term Point and Figure chart of ACN, below, we can see the whole move up from the 2010-2011 lows. Prices have overshot a $148.52 price target but there is no distribution pattern developing.
Bottom line: Prices are extended on all three of these charts (above) but without some bearish divergences or signs that sellers are starting to become more aggressive, I do not see a reason to reduce positions or become cautious. Nevertheless, I would still suggest raising sell stop protection to a close below $145.