Office equipment and supply company HNI Corp. (HNI) was upgraded to 'Buy' today by TheStreet's quantitative service. The charts and indicators look bullish so let's take a look and see how we can combine two investment disciplines.
In this daily bar chart of HNI, below, we can see that prices soared the other day. New 2018 highs were made and volume soared. Prices were already above the rising 50-day moving average line and the 200-day line.
Earlier this month the 50-day average rose above the 200-day average for what is commonly called a (bullish) golden cross.
The daily On-Balance-Volume (OBV) line has been in an uptrend all year and it made new highs this month before the price breakout.
The Moving Average Convergence Divergence (MACD) oscillator gave a buy signal in late May when it crossed above the zero line.
In this weekly bar chart of HNI, below, we can see a base pattern and a strong move up. The daily chart, above, makes us think that the move up is largely over but this chart suggests there is more room on the upside. Prices are above the 40-week moving average line.
The weekly OBV line has been strong the past three months and the weekly MACD oscillator has crossed the zero line for a longer-term buy signal.
In this Point and Figure chart of HNI, below, we can see an upside price target around $48.
Bottom line: I doubt that HNI is a household name but the chart is memorable and bullish. Experienced traders could look to buy a shallow dip to $43 risking to $41 while looking for further gains to $48 and maybe higher.