In our June 23 update on Viacom (VIA) we said: "You have to look beyond the day-to-day news headlines and focus on the price action of Viacom. The chart of VIA is shaping up nicely, and a mark-up phase to around $65 could get going soon."
In this daily chart of VIA, above, we can see how prices have firmed since June 23. VIA is above the 50-day and 200-day moving averages. The daily On-Balance-Volume (OBV) line is positive and the momentum readings are not an issue.
In this updated weekly chart of VIA, above, we can see that prices have closed above the 40-week moving average line. The line is flat, but the slope could soon turn positive if VIA breaks above $50 on the close.The weekly OBV line is positive and supports the rally. The Moving Average Convergence Divergence (MACD) oscillator has moved back to the zero line and moving above it will be a new "go long" signal. It looks like the rally to $65 is getting under way. Traders should buy VIA on a close above $50 and add on strength.