Freshpet Inc. (FRPT) has been on a romp to the upside the past six months. There was a pattern of strong buying from September to early April on the chart (below) from the rising On-Balance-Volume (OBV) line and the result was a rally from $16 to $36 over the next five months.
FRPT is above the rising 50-day simple moving average line and the bullish 200-day moving average line. The OBV line, noted earlier, has moved up strongly from April to confirm the price strength. The daily Moving Average Convergence Divergence (MACD) oscillator turned bullish in April and is still bullish.
In this weekly bar chart of FRPT, below, going back three years we can see a rally from $6 to $36 with a rising 40-week moving average line and a very bullish weekly OBV line. The weekly MACD oscillator has been bullish since early 2017.
In this Point and Figure chart of FRPT, below, we can see an upside price target of $50 - a lot more room on the upside.
Bottom line strategy: It looks like FRPT is heading higher and it is just a question of where to buy it and what to risk. I would look to buy a dip to the $34 to $32 area and then risk below $28 for now. $50 is the price target based on the Point and Figure chart.
