Cintas (CTAS) has to be doing something very right because the charts look very positive. Let's take a look.
Stock prices and the indexes have had some big swings the past 18 months, but the uniform maker has traded sideways with an upward bias. Prices for CTAS in the daily chart, above, are firmly above the rising 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line has been trending upward since October telling us that buyers of CTAS have been more aggressive with more volume traded on days when CTAS has closed higher on the day. The Moving Average Convergence Divergence (MACD) oscillator is bullish and has been above the zero line since March.
I have only one word for this weekly chart of CTAS, above: impressive. Prices are above the rising 40-week moving average line. The OBV line on this time frame shows consistent aggressive buying. The MACD oscillator is in a bullish configuration. Convinced? CTAS looks like it is heading higher with the $105 to $110 area our upside target. A decline back below $92 would prompt us to take another look and cut our losses.