Louisiana-Pacific (LPX) was upgraded by TheStreet's quantitative service so I had to take a look at the chart this morning. I normally do not fall asleep at the wheel, but I missed the multiyear upside breakout. Going to try to catch up with the charts below.
In this daily chart of LPX, above, we can see prices were already over the rising 50-day and 200-day moving average lines before the mid-July breakout over $19. Other indicators are bullish, too. The daily On-Balance-Volume (OBV) line has been moving irregularly higher from a February low. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line, which is a positive, but the moving averages that make up the indicator recently crossed to the downside for a profit-taking sell signal.
This Point and Figure chart of LPX, above, clearly shows the upside breakout but getting rid of some of the price noise. The trade at $19 is clearly an upside breakout. Right? The breakout from this long consolidation measures to $27.50 as an initial target.
In this three-year weekly bar chart of LPX, above, we can see prices are above the rising 40-week moving average line. You can also see the rally above $19. The OBV line on this weekly time frame is positive. The MACD oscillator is above the zero line, which is also positive. The MACD might cross for a profit-taking sell signal like the daily chart, but considering our other charts, this is likely to prove to be a buying opportunity. A close back below $18.50 will give us pause about the bull story.