Flex (FLEX) has been in rally mode for the past year, but this move up is just part of a much longer-term advance that has further to go. Join me as I look at the latest charts and indicators.
In this one-year daily bar chart of FLEX, below, we can see that the price has tracked northward -- touching the rising, 50-day moving average line many, many times. FLEX is also above the rising, 200-day line. Way back in early April, you can see the bullish golden cross of the 50-day and 200-day averages.
The On-Balance-Volume (OBV) line has moved up for the past year, telling us that the volume of shares traded on days when FLEX has closed higher has been heavier than on the days when it has closed lower. Buying on an "up day" is a sign that traders are being more aggressive compared to buying on a down day. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line (bullish) for most of the year -- and is pointed higher.
This three-year weekly chart of FLEX, above, shows us a long consolidation from early 2014 to the beginning of 2016. This consolidation pattern has a breakout above $13. The 40-week moving average line is rising. The weekly OBV line is bullish and the weekly MACD oscillator is very bullish.
This Point and Figure chart of FLEX, above, also shows the breakout at $13 and a longer-term upside price objective of $29.50.
Bottom line: FLEX looks like it is consolidating its gains from January. Aggressive traders can buy FLEX here, and on strength -- risking below $14.50. The $29 to $30 area is our price target for 2017.
