Mattel, Inc. (MAT) was last reviewed in late February where I wrote that, "Is all the bad news out on MAT? Maybe, but aggressive traders could consider going long MAT on a close above $18 or a close above $19. Risk below $15. My first target is $22."
MAT has not broken out above $18 yet but the base pattern is more developed and still bullish. Let's take out the board games and some new charts.
In this daily bar chart of MAT, below, we can see that prices are just above the rising 50-day simple moving average line. We can also see a pullback and test of the slightly rising 200-day moving average line. This is a big improvement from just a few months ago when rallies were failing at the underside of the declining 200-day line.
The volume pattern is hard to read but the daily On-Balance-Volume (OBV) line shows a slight rise or improvement from late April. A rising OBV line is a sign of more aggressive buying.
The daily Moving Average Convergence Divergence (MACD) oscillator has been in a take profits sell mode since the middle of June but renewed price strength could turn this indicator more positive in the days ahead.
In this weekly bar chart of MAT, below, we can see that prices have been moving sideways the past 10 months. MAT rallied above the 40-week moving average line in June and it is still above it and the average has turned slightly positive.
The weekly OBV line made a low in April and rose to early June. Since early June the OBV line has softened slightly.
The weekly MACD oscillator is above the zero line which is bullish but it has narrowed towards a possible bearish crossover. A price rally for MAT could turn the MACD oscillator higher again.
In this Point and Figure chart of MAT, below, we can see a base pattern that goes back to early 2017. Strength above $19.00 will be bullish. An interim price target of $27.00 is projected.
Bottom line: MAT looks bullish and I would still want to go long on strength above $18 and $19. Risk to $15 and look for gains to the $27 area.