• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Industrials

Owens Corning Rally Should Continue After This Pullback

Large rallies are typically preceded by a period of accumulation.
By BRUCE KAMICH
Sep 11, 2017 | 10:34 AM EDT
Stocks quotes in this article: OC

The rally in Owens Corning (OC) the last month seemed to take on more urgency as prices jumped $10 in a relatively short period of time. A small upside price gap can also be seen recently. Prices are lower in early trading Monday. How does this short-term action look when combined with a longer-term uptrend?

Let's take a look at the charts and indicators for OC and see if we can focus on a clear strategy for the weeks ahead.

In this daily bar chart of OC, above, we can see chart support in the $68-$64 area but no nearby resistance. Prices are above the rising 50-day moving average line as well as the rising 200-day line. The daily On-Balance-Volume (OBV) is mildly positive from last September, dips in July and then starts rising again last month. I always like to see a rising OBV line with an uptrend as it gives me more confidence that buyers of the security are being aggressive with move volume being transacted on days when the stock has closed higher.

The trend-following Moving Average Convergence Divergence (MACD) in the bottom panel has turned up from above the zero line for a fresh go long signal.

In this weekly bar chart of OC, above, we can see how effective the rising 40-week moving average line has been in defining the uptrend and keeping trend-following traders on the right side of the stock. The weekly OBV line has been up for most of the past three years and supports and confirms the advance. The weekly MACD oscillator also turned up like the daily chart to confirm the bull move under way.

In this Point and Figure chart of OC, above, we see the uptrend and a potential price target of $82.18. Support begins around $68.77.

Bottom line: Large rallies are typically preceded by a period of accumulation and big declines can follow significant top patterns. There is no top pattern on OC so I would look for the dip in the shares today to be short-lived and aggressive traders looking to add to long positions might consider this pullback as a buying opportunity.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Industrials | Basic Materials

More from Industrials

Bearish Bets: 3 Sluggish Stocks You Should Consider Shorting This Week

Bob Lang
May 15, 2022 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

Bearish Bets: 3 Slumping Stocks You Should Consider Shorting This Week

Bob Lang
May 8, 2022 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

Bears Remain in Control of Rockwell Automation

Bruce Kamich
May 4, 2022 9:12 AM EDT

ROK continued to weaken Tuesday. Here's our latest outlook.

Plug Power Is a Strictly Speculative Name: Here's My Trade Idea

Stephen Guilfoyle
Apr 19, 2022 10:35 AM EDT

PLUG has a number of high volume clients and that could be huge going forward.

Are Linde's Charts Foreshadowing Economic Weakness?

Bruce Kamich
Apr 18, 2022 2:58 PM EDT

Here's what to avoid with LIN.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 03:07 PM EDT PAUL PRICE

    Why is Wal-Mart Down Big Today?

    Besides its poor earnings report Wal-Mart (WMT) wa...
  • 07:14 PM EDT PAUL PRICE

    A New, Very Scary Movie

  • 08:51 AM EDT PAUL PRICE

    Advice From the Future...

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login