Back on April 11 we saw a tired Hain Celestial Group (HAIN). Momentum was weakening and the On-Balance-Volume line was flat.
Instead of pulling back to retest the January/February lows, HAIN traded sideways until early May and then turned sharply higher. Now that you know that no investment approach is 100%, we are looking at HAIN again.
In this daily chart of HAIN, above, we can see the progress of the last two months as prices have made a quick sprint to $50 from near $40 followed by a consolidation and recently yet another move higher. Back in April, HAIN was above just the rising 50-day moving average line, but since then it has closed above the 200-day average and we have a bullish golden cross of the 50-day and 200-day averages earlier this month.
Our other indicators show a similar condition as they did in April. We have a bearish divergence in May and June, as prices made higher highs, but the momentum study made lower highs. In addition, the daily On-Balance-Volume (OBV) line is still basically flat.
In this weekly chart of HAIN, above, we can see a significant improvement in the indicators over the past two months. Prices are now above the 40-week moving average line. The boring, flat daily OBV line, when changed to a weekly timeframe, shows a strongly rising line suggesting aggressive buying.
The weekly Moving Average Convergence Divergence (MACD) oscillator was below the zero line in April and is now above the line and giving us an outright go long signal. So we missed the boat on HAIN, what now? HAIN is extended on the upside, so new longs should try to enter on a shallow dip towards $50 if available. On the upside, there doesn't seem to be much resistance between here and $65.