AllianceBernstein Holding L.P. (AB) is edging closer to a major long-term upside breakout on the charts. AB was severely cut down in the 2008 bear market and it has spent years in a sideways base pattern after its near death experience. My boss and mentor Louise Yamada was fond of saying that "the bigger the base the higher in space." AB has a big base - let's look at the charts.
In this daily bar chart of AB, below, we can see a durable uptrend over the past twelve months. Prices are above the rising 50-day moving average line and the bullish 200-day line. The daily On-Balance-Volume (OBV) line has been in an uptrend from January and its rise tells us that buyers of AB have been more aggressive with heavier volume numbers being traded on days when the stock has closed higher on the day. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for much of the past year and is currently in a bullish mode.
In this three-year weekly bar chart of AB, below we can see a strong rise from early 2016. Prices are above the rising 40-week moving average line. The weekly OBV line is bullish as is the MACD oscillator.
In this long-term weekly bar chart of AB, below, we can see the decline from $95 to $10 and the subsequent trading range market. The weekly OBV line shows a strong rise from 2012. An upside breakout from this base pattern should measure at least to $55.
In this long-term Point and Figure chart of AB, below, we can see a breakout at $27. No price target is indicated.
Bottom line: Investors with patience could go long AB at current levels and on a dip to around $29.50. Get very aggressive above $35. My long-term price target is $55.