Praxair (PX) recently broke out of a sideways consolidation pattern. Prices were stuck in a $115 to $125 range for about 10 months. As prices moved sideways it looks like buyers quietly accumulated shares in the $120-$116 area.
Sideways patterns do not go on forever and PX broke out over its August and December highs in the past two weeks. (Read Jim Cramer's take on the move in industrials here.)
Let's review the charts and indicators for PX and see if it is still buyable after the breakout.
In this daily chart of PX, above, we can see the 10-month trading range. Not look closer at April when prices stayed above the rising 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line is positive for June to December and then makes a saucer turn until April when it strengthens again.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line is a bullish mode.
In this weekly bar chart of PX, above, we can see that prices are above the rising 40-week moving average line. The weekly OBV line just made a new high for the move up -- a good sign. The weekly MACD oscillator turned up so we have a fresh go long signal.
In this Point and Figure chart we can see the uptrend and the new high. The chart gives us a target of $144 and change.
Bottom line: PX is in a strong bull trend. Prices broke out on the upside when the $124 level was broken. With a $144 price target the upside looks attractive and longs at current levels or on a dip towards $126 can be established risking a close below $123.