Proofpoint, Inc. (PFPT) was reviewed in the middle of April where I said, "If you reduced your long position in PFPT, now is the time to get back in. Traders could add to longs at or below $125, risking below $110. The $138-$140 (area) is our next price target."
Looking back over the past six weeks we can see (first chart, below) that prices pulled back enough to get long without reaching our suggested stop loss level. Prices posted a strong gain on Friday so let's see what is in store for PFPT moving ahead.
In this daily bar chart of PFPT, below, we see three trends on the chart. There is a sideways trend around $90 from last June to the end of December. There is an uptrend from January to April, and there is a sideways to higher trend from March.
Prices dipped towards the rising 50-day average line in early April and tested the line in early May. Today we are below the 50-day line but that probably won't last long.
The daily On-Balance-Volume (OBV) line shows an uptrend from December but has leveled off in in recent weeks. It will not take much for the OBV line to make a new high.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has been correcting down to the zero line since the middle of March and could turn up to a fresh go long signal if prices strengthen from here.
In this weekly bar chart of PFPT, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has been largely neutral for months. The weekly MACD oscillator has narrowed and could cross to the downside for a take profits sell signal if prices weaken further.
In this Point and Figure chart of PFPT, below, we can see a downside price target of $110.37 but a rally to $123.69 will probably turn the chart bullish again.
Bottom line: PFPT could trade sideways a bit longer but the overall condition of the indicators suggests we could push up above $130 in the weeks ahead.