New York Times Co. (NYT) has been on a tear in recent weeks after it broke out on the upside from an eight-month consolidation pattern. Prices have doubled from their 2015-2016 base, but the charts say there's still more upside. Let's "read all about it."
In this updated daily bar chart of NYT, we can see how prices traded sideways from May through December:
Notice how the daily On-Balance-Volume line (OBV) line was flat from June through October? This tells us that buyers and sellers were in balance. However, the OBV line began to rise significantly in January, signaling that buyers had become aggressive.
We can also see that the 50-day moving average line (the yellow line in the chart at the very top) turned upward in January, as did the rising 200-day line (the blue line). The Moving Average Convergence Divergence (MACD) also moved above the zero line in November for an outright "Go Long" signal, while the oscillator is still positive.
We can see a number of bullish cues in NYT's weekly bar chart are well:
For example, prices are above the rising 40-week moving average line (the yellow line in the top panel above). Volume has also been increasing since May, while the weekly OBV line is bullish and confirms the price gains. The weekly MACD oscillator is also in a strong bullish configuration.
In this Point and Figure chart, we can see an upside price target of $33.64 vs. the $25 the stock is trading at as I write this. A trade at $25.93 would be a new high for the move up, and would signal a fresh breakout:
The bottom line: Aggressive traders could go long on NYT around current levels and then add on strength. My nearby price targets are $33.64, $35 and $36.
