Baxter International (BAX) has been in an uptrend for several years. The recent upside breakout over $49 refreshes the bull trend.
Let's look at the charts and indicators to update our risk/reward numbers.
In this one-year daily bar chart of BAX, above, we can see a consolidation from around $43 to $49 from May to January. Prices push up through the upper end of this pattern this month above $49. BAX is now above the rising 50-day and 200-day moving averages. The volume pattern is hard to read but the On-Balance-Volume (OBV) has turned up from a December low point. The trend-following Moving Average Convergence Divergence (MACD) oscillator turned above the zero line in January for an outright go-long signal.
In this weekly chart of BAX, above, we see prices are above the rising 40-week moving average line. The weekly OBV line has not yet made a new high but it has turned up the past two months. The MACD oscillator on this timeframe gave a fresh outright buy signal with its crossover above the zero line.
This Point and Figure chart of BAX, above, is pretty amazing as we can see an uptrend going back to 2004. We have a small double-top formation at $50 and a trade at $51 will be a fresh breakout.
