II-VI (IIVI) is a provider of solutions for cutting-edge optical networks, but I think of it as a company with a great-looking chart and bullish indicators.
In this one-year daily chart of IIVI, below, we can see how prices started their uptrend in September. Prices are above the rising 50-week moving average line and the rising 200-day average. The daily On-Balance-Volume (OBV) line has been rising since June (preceding the price breakout) and tells us that buyers of IIVI have been more aggressive accumulators of the stock for months. The Moving Average Convergence Divergence (MACD) oscillator has been bullish since late July.
In this five-year weekly chart of IIVI, below, we can see a multi-year base pattern with prices above the rising 40-week moving average line. The weekly OBV line bottomed in 2014 and suggests that buyers have been accumulating shares of IIVI for more than two years. The MACD oscillator on this weekly timeframe has been above the zero line since early 2015.
This long-term Point and Figure chart of IIVI, below, shows the big base pattern and the important breakout at $29. No price target is shown but taking an unofficial "count" gives me $60 and $80 as potential targets.
Bottom line: Buy II-IV on available price weakness, risking a close below $35 for now. Add to longs on a close above $41. Our first price target is $60.
