Brookfield Asset Management Inc. (BAM) was upgraded to a 'Buy' today by TheStreet's quantitative service. A look at the charts and indicators will bring in another investment approach to improve our odds of success in this endeavor. Remember that no investment approach or technique is perfect and a combination of approaches is a smart way to go, in my opinion.
In this daily bar chart of BAM, below, we can see a multi-month advance to a high in December followed by a decline to a February low. Since February BAM has traded sideways with improving technical studies. BAM just rallied above the still declining 50-day moving average line and is around a dollar below the cresting 200-day average line.
As prices have moved sideways around $39 the past two-plus months the daily On-Balance-Volume (OBV) line has been steady and the Moving Average Convergence Divergence (MACD) has moved up with cover shorts buy signals.
In this weekly bar chart of BAM, below, we can see that prices are below the slightly rising 40-week moving average line. The weekly OBV line is still pointed down but the MACD oscillator has begun to narrow towards a possible cover shorts buy signal.
In this Point and Figure chart of BAM, below, we can see an upside price target of $45.52 being projected. A rally to $40.99 will strength the picture.
Bottom line: A quantitative upgrade to buy and better technical conditions on the daily chart tell me to be a buyer of BAM on strength above $41 looking for new highs above the December zenith. Risk below $38.
