Time flies. We looked at Cintas (CTAS) some two years and two months ago when I wrote that " CTAS looks like it is heading higher with the $105 to $110 area our upside target. A decline back below $92 would prompt us to take another look and cut our losses." CTAS never declined to our stop loss and has continued to climb to our price target and then double from there. I hope that investors stayed in for the long and profitable ride higher. Let's look at CTAS again this morning.
In this updated daily bar chart of CTAS, below, we can see the progress higher and higher the past 12 months. CTAS has spent most of the time above the rising 50-day moving average line. Tests of the average have turned out to be buying opportunities. The volume of trading has been uneven but the On-Balance-Volume (OBV) line rose from August to March and then leveled off until July when it started to rise again. A rising OBV line is a sign that buyers of CTAS have been acting more aggressively than the sellers. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for nearly all of the past year and is narrowing towards a possible crossover and take profits sell signal.
This weekly chart of CTAS, below, is a thing of beauty as prices reach $210 when they traded around $80 only three years ago. This makes buy and hold look easy. CTAS has been above the rising 40-week moving average line for over two years. The weekly OBV line is generally constructive and the MACD oscillator is bullish.
In this Point and Figure chart of CTAS, below, we can see an upside price target of $249 being projected. Let's call it $250.
Bottom line: The chart of CTAS is amazing. Prices are pointed up with no signs of distribution. $250 is the next upside price target and maybe that objective is conservative. Continue to play CTAS from the long side and risk below $190.
