Primerica Inc. (PRI) has broken out on the upside. How far might this rally extend? Let's check the latest charts and indicators of this Duluth, Georgia based distributor of financial products.
In this daily bar chart of PRI, below, we can see a very positive looking combination of price action and indicators. PRI was in a large consolidation pattern from November with buying coming in the $95-$90 area and prices stalling out above $105. Prices crossed above and below the 50-day moving average line a number of times over the past six months but in May PRI rallied above the 50-day line where it has remained. The slope of the 50-day average is bullish and we can see successful tests of this indicator in late May and late June. The 200-day moving average has been rising the past twelve months and was tested in May. The daily On-Balance-Volume (OBV) line was neutral for much of the past year but shows a rising pattern from April and new highs this month. The trend-following Moving Average Convergence Divergence (MACD) has been in a bullish mode since late May when it moved above the zero line.
This weekly chart of PRI, below, shows a bullish set up. Prices are above the rising 40-week moving average line. The weekly OBV line has been steady/firm since January and looks to be edging higher. The weekly MACD oscillator has been above the zero line for more than two years and recently crossed to the upside for a fresh outright go long signal.
In this Point and Figure chart of PRI, below, we can clearly see the upside breakout at $108. A longer-term price target of $150 is being projected.
Bottom line: Traders should approach PRI from the long side on any shallow dip or pullback. Risk below $105 and look for $150 as our longer-term price target.