Steris Corp. (STE) broke out on the upside last year, breaking out of a long base pattern. Prices have climbed nicely but there looks to be more gains in this current advance. Let's check out the charts and indicators for a strategy.
In this daily bar chart of STE, below, we can see that prices are above the rising 50-day moving average line and above the rising 200-day line. STE has crossed above and below the 50-day line numerous times since the end of October and it tested the 200-day line in early February.
The daily volume pattern is very hard to read on this chart but the On-Balance-Volume (OBV) line has been positive the past year.
The trend-following Moving Average Convergence Divergence (MACD) is above the zero line in a bullish configuration.
In this weekly bar chart of STE, below, we can see a sideways basing pattern from March 2015 until April 2017 around the $70 area. I picked $70 as the rough mid-point of the trading range. A double from this base or a rally to the $140 area would be my longer-term price target for STE. Prices are above the rising 40-week moving average line.
The weekly OBV line turned up in November 2016 and shows significant buying or accumulation. The weekly MACD oscillator is turning up again to a fresh buy signal above the zero line.
In this Point and Figure chart of STE, below, we can see a double top breakout at $94 and a price target of $110 being projected.
Bottom line: STE broke out on the upside from a five-month consolidation pattern and further gains towards $100 and $110 look possible on the charts. Traders could go long here risking below $90.