We reviewed that charts of Henry Schein, Inc. (HSIC) in the middle of May when it was upgraded to a buy by TheStreet's quantitative service. I was bullish on the stock writing that "I like the charts and the quantitative buy rating on HSIC. Traders could go long on strength above $78 risking below $69."
Traders should be long and profitable so let's check the charts again.
(For more on HSIC, see Don't Forget the Consumer: Cramer's 'Mad Money' Recap)
In this updated daily bar chart of HSIC, below, we can see that prices have broken above the April/May highs and the January zenith. Prices are above the rising 50-day moving average line and the bottoming 200-day line. A bullish golden cross of these two popular moving averages can be see at the end of June.
The daily On-Balance-Volume (OBV) turned up at the beginning of June and has continued to climb to new highs - a bullish condition.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in June for an outright go long signal.
In this weekly bar chart of HSIC, below, we can see that prices are above the now rising 40-week moving average line.
The weekly OBV line shows a slight improvement over the past three months.
The weekly MACD crossed above the zero line recently for an outright buy signal on this longer time frame.
In this weekly Point and Figure chart of HSIC, below, we can see a longer term price target of $94.82 or $95 if we round up.
Bottom line strategy: Traders who followed our last recommendation should continue to hold longs but raise sell stop protect to $75 now. Additional positions can be bought on strength. $95 is now our longer-term price objective.