The last time I looked at the charts of HAS was back in late October where I wrote that "I would look for an $85-to-$100 trading range on HAS over the next several months. If the $85 level holds, I would consider approaching the long side, risking a close below $80."
Traders may be long as our recommended stop loss order was never reached. Let's put the fundamentals aside this morning and look at the charts and indicators of this stock, which was upgraded to "Buy" today by TheStreet's Quant Ratings service.
In this daily bar chart of HAS, below, we can see a big upside price gap with strong volume yesterday. Prices gapped above the early July high and closed above the February zenith. HAS was already above the rising 50-day moving average line and the flat 200-day line. Yesterday's price strength could soon turn the 200-day positive.
The daily On-Balance-Volume (OBV) line has been rising since a low in late April. The bullish OBV line tells us that buyers of HAS have been more aggressive with heavier volume being traded on days when the stock has closed higher.
The trend-following Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in May and gave a fresh outright go long signal yesterday.
In this weekly bar chart of HAS, below, we can see a bullish alignment of our favorite indicators. Prices are above the 40-week moving average line.
The weekly OBV line has been positive for the past three years and suggests there has been significant accumulation (buying).
The weekly MACD oscillator has crossed above the zero line for an outright go long signal on this longer time frame.
In this weekly Point and Figure chart of HAS, below, we can see an ascending triple top breakout at $100 and a price target of $118.
Bottom line: HAS made a big upside move yesterday. HAS traveled in a wide high/low range and that kind of price movement is typically followed by a period of sideways trading as traders and investors adjust their positions.
Traders who are long HAS should continue to hold but they can raise sell stop protection to $92 from below $80. $118 is the next upside price target with the $150 area a possibility longer-term.