Feeling lucky? Boyd Gaming (BYD) is breaking out on the upside and traders should get on board now. The charts and indicators tell a bullish story.
In this daily bar chart of BYD, below, we can see a rally from an early November low. Prices surged in a measured moved to the upside from the early November low to an early December peak. Since the December high prices have consolidated in a $2 range before its recent upside breakout. BYD is trading above its rising 50-day and rising 200-day moving averages. The On-Balance-Volume (OBV) line is in a bullish phase and the Moving Average Convergence Divergence (MACD) oscillator is above the zero line, crossing to a take profits sell signal.
In this weekly chart of BYD, below, we can see that prices are above the rising 40-week moving average line. There is a large 16-month ascending triangle pattern and with the horizontal trend line across the $21.50 level and the rising trend line connecting the lows of February 2016 and October 2016. Volume diminished through the sideways pattern and the On-Balance-Volume (OBV) line weakened from March last year to February this year. The weekly MACD oscillator is above the zero line and rising.
In this Point and Figure chart of BYD, below, we can see the uptrend from 2011 and the large sideways consolidation pattern of the past year. The recent trade at $22 is a breakout from the pattern and gives us an upside price target in the $31-$32 area.
Bottom line: BYD broke out on the topside of large triangle formation and prices have retested the breakout point. BYD looks set to resume its advance and this becomes a good place to buy or add to longs. Traders can go long here and on a close above $22.50. A sell stop just below $20.75 looks good. On the upside, $32 is our price target based on a Point and Figure count.