Canadian-based Magna International Inc. (MGA) is a leading global automotive supplier that just announced a deal to develop systems for the next generation of electric vehicles. Sounds cutting edge, but let's check out the price charts and indicators to see if the trends match the press releases.
In this daily bar chart of MGA, below, we can see a strong uptrend the past 12 months. MGA is above the flattening 50-day moving average line and the rising 200-day line. The 200-day average was tested successfully in February and March.
The daily On-Balance-Volume (OBV) line shows a positive trend the past year telling us that buyers of MGA have been more aggressive.
The trend following Moving Average Convergence Divergence (MACD) oscillator in the lower panel shows that this indicator just crossed above the zero line for an outright go long signal.
In this weekly chart of MGA, below, we went back five years to show how important a breakout is on the charts. The chart pattern looks like a large high level cup and handle pattern or a saucer pattern. A rally above $60 would break a key resistance level and open the way to new high ground. Prices are above the rising 40-week moving average line.
The weekly OBV line has been rising the past year telling us that buyers have been aggressive. The weekly MACD oscillator is crossing to the upside for an outright go long signal.
In this Point and Figure chart of MGA, below, we can see a conservative upside price target of $70. A trade at $60 will be a triple top breakout.
Bottom line: The charts and indicators of MGA are definitely bullish and traders and investors could go long above $60 risking below $55 looking for gains to $70, and perhaps higher in the weeks ahead.