Deltic Timber (DEL) broke out to the upside on Wednesday. Let's check out the charts and indicators to see how to play this new high.
In this daily bar chart of DEL, below, we can see the strength in DEL this month. Prices are above the slightly rising 50-day moving average line and the rising 200-day line.
The volume pattern shows a significant change from the low pace of trading from February to early October and the strong level of trading since late October. Buyers of DEL began to act more aggressively in late August, and this can be seen through the rising On-Balance-Volume (OBV) line.
The Moving Average Convergence Divergence (MACD) oscillator recently turned back above the zero line for an outright go long signal.
In this weekly bar chart of DEL, below, we can see a two-year uptrend. Prices are above the rising 40-week moving average line. The weekly OBV line has been rising sharply the past six months and tells us that buyers of DEL on this timeframe have been aggressive. The weekly MACD oscillator is turning up now for another buy signal.
In this Point and Figure chart of DEL, below, we can see a breakout at $97.41 and a longer-term upside price target of $116.92.
Bottom line -- the rally in DEL looks strong with volume confirming the advance. Aggressive traders should look to buy DEL around current levels or on strength above $100. Risk a close below $93. Look for gains to the $115-$120 area.