The bears had been in control of Garmin (GRMN) for much of the past two years, but it looks like the stock is plotting a new direction.
Prices for GRMN, chart above, appear to have bottomed out with twin lows in October and January. Prices gapped to the upside in January with GRMN closing above the 50-day moving average and the 200-day average. In addition, the slope of the 50-day average is now positive. The On-Balance-Volume (OBV) line is steady and the Moving Average Covergence/Divergence oscillator is very bullish.
GRMN is coming out of the woods. Prices are above the 40-week moving average. The OBV line has stopped going down and the MACD oscillator generated a cover shorts signal and is rapidly headed up to the zero line and a potential buy signal. Prices look poised to head higher. Traders could go long GRMN at current levels looking for a rally into the $45-$50 area in the weeks ahead. A retreat under $37 would dash the current positive outlook.