IDEXX Laboratories, Inc. (IDXX) has made a huge rally since 2015, coming up from below $75 to over $250 recently. This is the kind of out-performance we would all like to have in our portfolios and be able to impress our friends at cocktail parties. Can the rise keep going and going? Let's check the indicators and charts.
(For more on the subject, see Jim Cramer: 4 Pet-Related Stocks That Are Top Dog)
In this daily bar chart of IDXX, below, we can see a strong uptrend from January. Prices have rallied with higher highs and relatively short and shallow corrections.
IDXX is above the rising 50-day moving average line and we can see that the line was successfully tested several times in recent months. When you see a successful test of a moving average line it tells you that you are not the only one looking at it and reacting to it.
The daily On-Balance-Volume (OBV) line shows a positive trend from November.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since December but it recently turned down to another take profits sell signal.
In this weekly bar chart of IDXX, below, we can see the impressive advance from late 2015/early 2016. Prices are above the rising 40-week moving average line.
The weekly OBV line shows a bullish trend the past three years.
The weekly MACD oscillator has been above the zero line for this bull move but it has recently narrowed and this might foreshadow a take profits sell signal.
In this Point and Figure chart of IDXX, below, we can see the uptrend. The computer program that looks at the price action and the reversals is projecting a downside price target of $213.71.
Prices may not decline or may not decline that much but this forecast is interesting and should not be totally ignored.
Bottom line: An old hand in the commodity business once told me that the lower a market goes the more bullish you should become and the higher a market goes the more bearish you should become. He retired very wealthy so when I looked at IDXX today I was reminded of what he told me.