We looked at Seagate Technology (STX) earlier this month, writing that, "If stopped out or not long STX I would look to go long on strength above $57 risking below $48 now. Look for gains to our $73 price target." Traders who followed this advice should be long above $57 but our price target has not been reached. Should we adjust our strategy? Let's look at the charts and indicators again.
In this daily bar chart of STX, below, we can see that prices are above the rising 50-day moving average line. The 200-day line is also rising and we can see a bullish golden cross of the 50-day and 200-day averages at the end of December. The daily On-Balance-Volume (OBV) line has been rising strongly the past twelve months and argues for further price strength. The only indicator that says to watch closely is the a lower high from the momentum study. From January to March price momentum has slowed.
In this weekly bar chart of STX, below, we only see all bullish signals. Prices are above the rising 40-week moving average line. Prices have broken out over the 2017 highs and have had a pullback to the breakout area. The weekly OBV line continues to rise and confirm the price strength. The weekly Moving Average Convergence Divergence (MACD) oscillator is clearly rising and bullish.
In this Point and Figure chart of STX, below, we can see a price objective of $69.75 being projected.
Bottom line -- STX is showing independent strength but longs should raise stop protection to $54. The $70-$73 area is my adjusted price target.