Ollie's Bargain Outlet Holdings, Inc. (OLLI) was checked out back in November of last year, and I recommended that, "...the declining OBV lines are telling me to raise sell-stop protection to a close below $41 and I would have no problem if traders booked some profits." As it turned out OLLI never declined to $41 and has tacked on nearly $30 in the past six months. What should traders be doing at this juncture of time and price?
In this daily bar chart of OLLI, below, we can see that prices have recently accelerated above the rising 50-day moving average line. The 200-day line is positive and rising and comfortably below the market The daily On-Balance-Volume (OBV) line turned up in late November and tells us that buyers have been more aggressive for months. The OBV line is very close to making a confirming new high. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration.
In this weekly bar chart of OLLI, below, we can see that despite a limited price history OLLI has a bullish chart. Prices are above the rising 40-week moving average line. The weekly OBV line is bullish and has confirmed the rally the past two years. The weekly MACD oscillator is bullish on this longer time.
In this Point and Figure chart of OLLI, below, we can see the breakout at $64.78 and the upside price target of near $80.
Bottom line: OLLI is strong on all time frames. The rally is likely to continue with the $80 area the next price objective. Traders should raise sell stop to $60.