FMC Corp. (FMC) was upgraded to a buy today by TheStreet's quantitative service. I wrote about how FMC was looking more attractive two weeks ago. My strategy was that, "Aggressive traders could probe the long side of FMC around current levels, risking below $73, or a new low for the move down. Less aggressive traders could wait for a close above $85 before going long. I am looking for a retest of the January peak."
Those buy signals are working out nicely and I do not mind the company from the quantitative community. How do the charts and technical indicators look today?
In this daily bar chart of FMC, below, we can see a small reversal pattern the past three months. Prices have broken the downtrend from the January high. Prices are above the flat 50-day moving average line and just a few dollars below the still rising 200-day line.
The On-Balance-Volume (OBV) line has been rising nicely the past two months telling us that buyers of FMC have been more aggressive with heavier volume being traded on days when the stock has closed higher.
The Moving Average Convergence Divergence (MACD) oscillator is back above the zero line.
In this weekly chart of FMC, below, we can see that prices are below the still rising 40-week moving average line but that could change soon.
The weekly OBV line has broken out to a new high and that may be foreshadowing new price highs soon.
The weekly MACD oscillator has narrowed recently and we could see a bullish cover shorts crossover in the next week or so.
In this Point and Figure chart of FMC, below, we can see the recent double top breakout at $84. An upside price target of $101 is being projected.
Bottom line: I like the movement of FMC as it is turning to the upside. I like that quantitative analysts are recommending the stock. Aggressive traders can buy more here and raise sell stops to $76 from below $73. The $95-$100 area is my initial upside price target.