Parker-Hannifin (PH) has continued to gain after our early February update. After we reviewed the charts and indicators on PH we concluded, "Looking to go long PH or add to longs? I would try to buy the shares around or near $150 and risk a close below $139 (the bottom of nearby support). $180 is my upside price target."
PH got up to $163.14 and has dipped a little and traded below the rising 50-day moving average line. A quick check of the charts wouldn't hurt to see if we need to alter our strategy.
In this daily chart of PH, below, we can see that prices are not as robust as they were in February. In March, prices dipped to the rising 50-day moving average line and this month prices have traded under the line. The On-Balance-Volume (OBV) line moved up in March but has turned flat in April. The price momentum study shows a weakening or slowing momentum pattern.
Now let's see what the longer-term chart looks like.
In this updated weekly chart, below, we can see that PH is above the rising 40-week moving average line. The weekly OBV line is still positive but the Moving Average Convergence Divergence (MACD) oscillator has crossed to a take profits signal.
Bottom line: The trend is still up for PH but there are some signs of weakness. Longs from $150 should raise their sell stops to a close below $152. We might still reach our $180 price target.