Briggs & Stratton (BGG) surged higher on expanded volume the past two days, breaking above the highs of December and August. There remains a little more overhead resistance from 2013 in the $24 to $25.50 area on our weekly bar chart but this doesn't show up on a Point and Figure chart due to different construction methods.
BGG could power higher to the $35-$36 area in the weeks and months ahead and this would be a significant percentage move from here. Let's look at the updated daily and weekly charts to see what the indicators look like now.
In this daily bar chart of BGG going back 12 months we can see mostly a sideways trading range market interrupted by some weakness in September through November. The 200-day moving average line has been flat for the past three months but it and the shorter 50-day moving average line are looking like they are about to turn higher.
The daily On-Balance-Volume (OBV) line has been gently rising the past three years and it can be seen breaking out of its tight range before prices broke out. The Moving Average Convergence Divergence (MACD) oscillator just turned up above the zero line for an outright go long signal.
In this longer-term weekly chart of BGG going back to 2012 we can see the prolonged sideways market. Prices have rallied recently and a close above $24 and then a close above $25.50 will be breakouts and open the way to further gains.
The weekly On-Balance-Volume (OBV) line has been rising since October and is pointed up. The weekly MACD oscillator is in a bullish mode.
In this Point and Figure chart of BGG, above, we can see the breakout and the price target of $35-$36.
Bottom line: BGG was idling for three months but the engine finally "caught" and prices has soared. Traders looking to get long BGG should buy a dip to $23.50 or lower in the next few sessions. A sell stop below $22.50 should be use for now but look to raise when prices close above $25.50.