RPM Int'l Inc. (RPM) made a major upside breakout last month. Prices have continued to creep higher and a big upside price target is now being projected. Let's check out the charts and indicators.
In this daily bar chart of RPM, below, we can see a long sideways consolidation pattern with a breakout gap to the upside at the end of June. A bullish golden cross of the 50-day moving average line and the 200-day moving average line can be seen in early July.
Long before prices broke out on the upside, the daily On-Balance-Volume (OBV) began its rise in March and made new highs in May.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in May for an outright go long signal.
In this weekly bar chart of RPM, below, we lose the gap but we can still see the breakout over the highs of 2016 and 2017. Prices are way above the rising 40-week moving average line.
The weekly OBV line has broken out to a new high to confirm the price gains.
The weekly MACD oscillator is in a very bullish configuration above the zero line.
In this long-term Point and Figure chart of RPM, below, we can see a big breakout at $56.00 and a major long-term price target of $103.00.
Bottom line: RPM has made a major upside breakout. Traders should look to go long near $60 risking below $57. The $100-$103 area is our longer-term price objective.