Tupperware Brands (TUP) has broken above a longer-term downtrend line, just as it got an upgrade from our quantitative service.
TUP has rallied strongly from a late January low (chart above) and the technical studies are in strong shape. The stock rallied above the 50-day moving-average line -- and the slope of that line is rising. TUP also climbed over the 200-day average and that line is flattening.
Volume is confirming the advance, with the On-Balance-Volume (OBV) line rising since late January. This rising OBV line tells us that buyers are more aggressive, with more volume being traded on days when TUP closes higher. Prices are testing the October highs, which will be another positive when those highs are broken.
This weekly chart of TUP, above, is exciting: Prices have broken out of a two-year downtrend. It has been trading over the 40-week moving average line for a number of weeks and the OBV line has been rising for two months.
In the lower panel, there is a bullish divergence between the lower lows in price from September and January and higher lows from the momentum study. The rate of decline slowed into the bottom. A slower rate of decline typically comes from investors becoming scale-down buyers, so investors in TUP should look for its advance to extend to around $70.