Masco (MAS) recently broke on the upside from a three-month consolidation pattern but a breakout over its 2016 high has yet to happen. Let's explore the daily and weekly charts and indicators to see if MAS can break the 2016 zenith and power its way further on the upside.
In this daily bar chart of MAS, below, we can that the indicators are confirming and supporting the bullish price action. MAS is above the rising 50-day moving average line and above the rising 200-day moving average line. There is a bullish golden cross of these two averages in early March. The On-Balance-Volume (OBV) line has been positive for most of the time since June and just up again with the latest price strength.
The trend-following Moving Average Convergence Divergence (MACD) oscillator just turned up from the zero line for a new outright go long signal.
In this weekly chart of MAS, below, we have a strong stock in a clear uptrend that's doubled over the past three years. MAS is above the rising 40-week moving average line. The weekly OBV line is steady and the weekly MACD oscillator is bullish.
The uptrend on MAS is clearly visible on the Point and Figure chart, below. A trade at $38 will be a fresh breakout on this kind of chart and open up the possibility of further long-term gains to around $50.
Bottom line: Traders could either buy a one or two day decline on MAS to go long or buy it on a close above $38. Either way I would risk a close below $34 and look for a move in the next few months to around $50.