IDEXX Laboratories (IDXX) has broken out to new all-time highs and the chart suggests a rally to $100 or higher. We love round numbers!
The price of IDXX has climbed steadily higher since late January, with only shallow dips or sideways corrections. Prices are comfortably above the upward-sloping 50-day and 200-day moving average lines. The daily On-Balance-Volume (OBV) line has been rising steadily along with prices -- just what chartists like to see. Also note the volume spike when prices broke out in early May. Last, our price momentum study is not diverging with lower highs.
In this weekly chart of IDXX, above, we can see the sideways $65-$85 trading range that kept IDXX in check for more than a year. In the past two months the technical story has really firmed. Prices are above the rising 40-week moving average line. The weekly OBV line has turned up and the trend following MACD oscillator is above zero and rising, also a bullish sign.
Price target? Because IDXX was in a $20 consolidation pattern for a year we should have a decent upside move. The convention is to add the height of the consolidation pattern ($20) to the breakout point to give us a $100-$105 price objective. Risk? A close back below $80 would mean we bought a blow-off top.