Aspen Technology, Inc. (AZPN) has more than tripled over the last three years. Prices look extended when compared to the rising 200-day moving average line but further gains look possible.
Let's inspect the charts and come up some parameters.
(For more on AZPN see Worried About the Right Thing?: Cramer's 'Mad Money' Recap)
In this daily bar chart of AZPN, below, can see that prices have not quite doubled in the past 12 months. AZPN is above the rising 50-day average line and the bullish 200-day average line.
The On-Balance-Volume (OBV) line is overall bullish and a brief sharp decline in June did not start a sustained decline.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and rising.
In this weekly bar chart of AZPN, below, we can see a bullish set-up. Prices are above the rising 40-week moving average line.
The weekly OBV line has been rising since early 2016 and the MACD oscillator is also bullish and pointed higher.
In this Point and Figure chart of AZPN, below, we can see a $104 price target has been met.
Bottom line: Because AZPN is extended on the daily chart we could see a $110-$100 sideways trading range before renewed gains.
