We looked at the charts of Canadian Imperial Bank of Commerce (CM) this morning and we were impressed. Bank stocks south of the border are mixed at best, but this bank stock was displaying the right stuff. Let's check out the charts and indicators.
In this daily bar chart of CM, below, we can see a possible cup and handle consolidation pattern. The cup unfolds from February to the end of July and the handle is made earlier this month. Prices have broken out on the upside the past two weeks.
CM is above the rising 200-day moving average line and the rising 50-day line which is getting close to making a bullish golden cross.
The daily On-Balance- Volume (OBV) line has been strong the past two months to tell us that buyers of CM are more aggressive and to confirm the price advance.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration above the zero line.
We can see a bullish alignment of the indicators in this weekly bar chart of CM, below. Prices are above the rising 40-week moving average line.
The weekly OBV line is pointed up and close to a new high for the move up, and the MACD oscillator is crossing the zero line for an outright go long signal.
In this Point and Figure chart of CM, below, we can see an upside price target of $100. Not all that far away but it is a new high and probably opens the way to still further gains.
Bottom line strategy: Traders could go long CM around $94 risking below $89 for now and look for gains to $100 - the January high.