First Data Corp. (FDC) has been making lower lows and lower highs since July but prices are showing a positive shift in recent weeks. Let's review the latest charts and indicators to see if an upside reversal is getting underway.
In this daily bar chart of FDC, below, we can see lower lows and lower highs until now. A pullback in the latter part of March did not break the February and early March lows. Prices are still below the declining 50-day moving average line and the declining 200-day line but that could change with a small rally as both indicators are relatively close.
The On-Balance-Volume (OBV) line is very interesting in that it has been rising since early December. The OBV line only dipped slightly in February when prices declined. This movement in the OBV line tells me that buyers of FDC have been more aggressive in accumulating long positions.
The trend-following Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts signal in early March and is moving above the zero line for an outright go long signal.
In this weekly bar chart of FDC, below, we can see that prices are below the declining 40-week moving average line but a rally above $17.50 would break that pattern. The weekly OBV line has been showing improvement the past two months and the MACD oscillator has narrowed and could cross to the upside soon for a weekly cover shorts buy signal.
In this Point and Figure chart of FDC, below, we can see three lows at $15.15. A decline to $15.00 would be a new low for the move down but this chart shows an upside price target of $20.58. A trade at $17.42 will refresh the upside and open the way to further gains.
Bottom line: Now that FDC has made a higher low we have a risk point to go long. Aggressive traders could go long FDC at current levels risking a close below $15.00. Add to longs on strength above $17.50. The low $20's is our first price target.