National Oilwell Varco Inc. (NOV) has been moving higher the past year but now is has made a much more important upside breakout. Longs could be increased here looking for a strong move higher in the months ahead. Let's visit with the charts and indicators to refine our strategy.
In this daily bar chart of NOV, below, we can see an uptrend from around $30 in August to $45 in May. There are corrections along the way but the pattern of higher lows and higher highs continues. Prices are above the rising 50-day moving average line and the rising 200-day line. A bullish golden cross of the 50-day and 200-day averages can be see in early January. The volume pattern right below the price chart is hard to interpret but the line chart of the On-Balance-Volume (OBV) line shows a long rise. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since March and it is now poised to cross to the upside for a new outright go long signal.
In this weekly bar chart of NOV, below, prices are above the rising 40-week moving average line. Prices are above the late 2016/early 2017 highs. The weekly OBV line is positive as is the MACD oscillator.
In this Point and Figure chart of NOV, below, we can see the breakout at $44 and the $59 price target.
Bottom line: Traders and investors could go long NOV at current levels and on strength. Risk a close below $40 looking for gains to $59 and then $65.