Brink's (BCO) has been in a lengthy consolidation pattern but it now looks poised for an upside breakout. Let's check the charts and indicators.
In this daily bar chart of BCO, below, we can see that prices could not stay above $85 for long and declines below $70 were not long sustained either. Prices have crossed above and below the 50-day and the 200-day moving averages. At the end of May the picture began to change. Prices gapped above the 50-day average and closed above the 200-day line. The daily On-Balance-Volume (OBV) line declined from October but turned up in late May. The Moving Average Convergence Divergence (MACD) oscillator moved to a buy signal in early June.
In this weekly bar chart of BCO, below, we can see that prices have closed back above the flat 40-week moving average line. The weekly OBV line is close to a new high while the MACD oscillator gave a cover shorts buy signal last month and could soon cross the zero line for an outright go long signal.
In this Point and Figure chart of BCO, below, we can see an upside price target or objective of $110. Trades at $83.08 and $88.19 will be bullish.
Bottom line: BCO looks set to move higher but I prefer to buy strength. Traders could go long above $83 and above $88. Risk below $74 and look for gains to $100 and then $110.
(BCO has been upgraded to a "Buy" by TheStreet's Quant Ratings service. Click here to learn more.)
