Blue Buffalo Pet Products (BUFF) does not have a lot of price history to work with but I like what I can see.
In this daily chart of BUFF, above, we can see that BUFF is just above the flat 50-day average line. Prices are above the rising 200-day average. The On-Balance-Volume (OBV) line has been rising all year. Momentum divergences are not an issue.
It looks like investors have been accumulating shares of BUFF during its five month consolidation zone. Prices are likely to break out on the upside and continue the advance.
Our longer-term price target is a doubling from the recent range or around $50. A close above $28 should start the move to the upside while a close below $23 is the risk point until the breakout happens.
(Full disclosure my cat loves her Blue Buffalo meals.)