Many chartists and technicians rely too much, in my opinion, on indicators. Indicators are just derivatives of the price action. DTE Energy (DTE) has what I think is a classic-looking base pattern, and that is where our analysis should start. Back to the price action!
In this chart of DTE, above, we can see the past 12 months of activity. Looking back to early 2015, we can see that dips to $76 were bought. In the soft part of the year, you could buy dips to $74, and more recently, buyers stepped up to $78 on DTE. Rallies have stalled out around $85, which has become a "neckline" for the base pattern.
Now we can look at the indicators. The On-Balance-Volume (OBV) line has been moving up since June/July, signaling that buyers have been more aggressive, with volume heavier on days when DTE closed higher. The trend following Moving Average Convergence Divergence (MACD) oscillator is moving up above the zero line. After months of crisscrossing the popular moving averages, DTE is now above the 50-day and 200-day.
The longer-term chart, above, of DTE is also encouraging to the bulls. On this timeframe, you can see the bullish set up on DTE above the rising 40-week moving average. Between a rising OBV line on this timeframe and the MACD oscillator turning up, DTE looks like it will retest the highs, on its way to new highs in the weeks ahead.