Looking for a long idea? Cabot (CBT) has a positive-looking chart and constructive indicators.
CBT has broken above its early December high (see the chart above), making a higher high and a five-month uptrend. Prices are above the 50-day simple moving average and the slope of this shorter average has turned positive. Prices have also bested the longer 200-day average, but its slope is flat at the moment. The On-Balance-Volume (OBV) line turned up from mid-January as buyers showed they could become more aggressive with heavier volume on days when CBT closed higher. The trend-following Moving Average Convergence Divergence (MACD) oscillator is very positive.
This longer-term chart of CBT reinforces the positive short-term chart. Here, CBT is above the 40-week moving average. The OBV line is rising on this weekly time frame and the MACD oscillator is bullish and above the zero line. The height of this base pattern for CBT suggests a potential for a rally to the upper $50s. Traders could go long CBT on this breakout over the December high using a $42 sell stop if the rally fails.