Aqua America: Go With the Flow

 | Mar 27, 2017 | 3:32 PM EDT
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March 22 was World Water Day. I went online and made a donation to, but I probably could have done more. It would have been good to look at the chart of Aqua America  (WTR) but other companies demanded more of our attention. WTR has made a base pattern since September and prices look poised for further gains.

Let's check the charts and indicators to see if WTR is still buyable.

In this daily bar chart of WTR, above, you should be able to see the base pattern, with a low in November and the neckline across $32.25. WTR is above the rising 50-day moving average line and above the still declining 200-day average. A golden cross of the 50-day and 200-day averages could be seen soon.

The On-Balance-Volume (OBV) line did not make a new low in November when prices made new lows and it has risen to confirm the price gains this year. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration above the zero line.

In this weekly chart of WTR, above, we can see the price action covering the past three years. Prices are above the still declining 40-week moving average line but notice the long rise in the OBV line from September 2015, suggesting strong accumulation for many months.

The MACD oscillator gave a cover shorts buy signal in December and is currently moving above the zero line for an outright go long signal.

In this Point and Figure chart, above, of WTR's constructed plotting percentage price swings we can see that a trade at $32.28 will be a double top breakout and yield a price target of $36-$37.

Bottom line: Traders could go long WTR on price strength above $32.40 with a sell stop below $31. We look for strength to $36 for starters.

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