SeaWorld Entertainment Inc. (SEAS) was upgraded today to a buy by theStreet.com's quantitative service. I don't remember looking at SEAS before today but this buy recommendation caught my attention. The charts look bullish and that combined with a quantitative recommendation look like a winning combination.
In this daily bar chart of SEAS, below, we can see that prices have more than double in less than a year - impressive. Prices gapped higher last week on very heavy volume. SEAS is above the rising 50-day moving average line and maybe too far above the rising 200-day average line. The daily On-Balance-Volume (OBV) line has been going up from November and signals that buyers of SEAS have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator just turned up to a fresh go long signal.
In this weekly bar chart of SEAS, below, we went back five years to show the recent breakout and what it means technically. There is some potential chart resistance in the $28-$34 area but it may not be meaningful after all these years. The weekly OBV line has been strong for several months and the MACD oscillator is bullish.
In this Point and Figure chart of SEAS, below, we can see the big upside breakout at $22 and a $27 price target. The size of this base suggests that a much higher price target is possible.
Bottom line strategy: Check out the fundamentals but the other two investment approaches suggest that SEAS is going higher. Traders could go long SEAS here and risk below $23 for now.