Parker-Hannifin (PH) has been on an upward trajectory the past year. Prices have left their 2014 highs in the dust and yet I see more gains ahead. Let's visit with the latest charts and indicators on the Cleveland-based name and see what may await us in 2017.
In this daily bar chart of PH, below, going back 12 months, we can see a rally last year that started out slowly but gained speed toward the end of the year. PH is trading above the rising 50-day moving average line after a successful test last month.
Prices have been above the rising 200-day average line since early July. The On-Balance-Volume (OBV) has been rising through 2016 and moved up in November to a new high confirming the new prices. The OBV line has been flat for the past two months and volume has been slower than what we saw in October and November. These observations are not sell signals but I am keeping them in mind.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has bullish (above the zero line) for most of 2016 and looks to be turning up again.
In this three-year weekly chart of PH, below, we can see both the 2015 decline and subsequent rally. Prices are above the rising 40-week moving average line. The weekly OBV line has been strong in 2016 and supports the uptrend. The MACD oscillator on this timeframe is bullish and pointed higher.
This Point and Figure chart of PH, below, shows a large "fulcrum bottom" pattern. The breakout over the 2015 highs is sharp and swift. Counting the columns across the base (width) and projecting it upward yields a potential price target of $180 for PH. Not bad.
Strategy: Looking to go long PH or add to longs? I would try to buy the shares around or near $150 and risk a close below $139 (the bottom of nearby support). $180 is my upside price target.
