Twenty-First Century Fox (FOXA) broke out on the upside in May after a four-month consolidation pattern. Prices are supported by a number of bullish technical signals. Let's review the charts this morning for targets, stops and a sensible strategy.
In this daily bar chart of FOXA, below, we can see that prices began to strengthen in early May when FOXA rallied above the 50-day moving average line and its slope turned positive. The 200-day average line has been bullish since early December. In December we can also see a bullish golden cross of the 50-day and the 200-day averages. The daily On-Balance-Volume (OBV) was steady during the sideways consolidation pattern and began to rise with prices in May to confirm the advance and tell us that buyers of FOXA were more aggressive. The Moving Average Convergence Divergence (MACD) oscillator turned up above the zero line in early May for an outright go long signal on this time frame.
In this weekly bar chart of FOXA, below, we went back five years to show how important it was for FOXA to move above $39. This rally breaks above the highs of 2018 but also the peak at the end of 2014. Prices are above the 40-week moving average line and the weekly OBV line is rising. The weekly MACD oscillator has also just crossed to a fresh outright go long signal.
In this Point and Figure chart of FOXA, below, we can see the upside breakout and a potential longer-term price target of $64.
Bottom line: FOXA has broken out on the upside. A sell stop at $38 (below the breakout point) seems logical. On the upside $50 and perhaps $64 are my price target.