Hologic (HOLX) is set to break out on the upside from a very bullish consolidation pattern, continuing the bull trend.
Let's check the charts.
In this daily bar chart of HOLX, above, we can see a good uptrend in place punctuated by some downward corrections or shake-outs. Two of these shake-outs were tests of the rising 200-day moving average lines and with hindsight they were great buying opportunities. HOLX remains above the rising 50-day and 200-day moving averages. The daily On-Balance-Volume (OBV) line has been going up and up the entire time, telling us that buyers of HOLX have been more aggressive. The daily MACD oscillator is above the zero line but in a short-term take-profits mode.
In this weekly chart of HOLX, above, we can see how prices have reached a peak in 2015 followed by a correction and a new advance back to the prior high. Prices are poised to break out to new highs -- HOLX is above the rising 40-week moving average line. The weekly OBV line turned up again in early 2016 and has been leading prices higher as it is already in new high ground. The MACD oscillator is above the zero line (bullish) and just turned up for a fresh outright go-long signal.
In this Point and Figure chart of HOLX, above, we can clearly see the price action by looking at only increments of $1 or $0.50 (below $20). By filtering out "noise" of small price changes, we can see that a trade at $44 is a clear upside breakout. A breakout at $44 allows us to generate a longer-term price target of $54 for HOLX.
Bottom line: All three of our charts are bullish. Traders could buy HOLX here and add on a close above $44. For now use a sell-stop below $41. The mid-$50s is our price objective.
