Global Payments (GPN) was reviewed in late May, where I wrote that "GPN could move significantly higher in the months ahead and we have a $155 price target but in the intermediate term more sideways price action is anticipated. Investors who are long could use a sell stop below the rising 200-day moving average line currently at $105."
GPN largely traded sideways from our May 24 update and began to rally again in August. Prices have reached new highs this month but have not reached our $155 price target.
Let's check out the latest charts and indicators to see if we need to alter our strategy on this fintech name discussed by Jim Cramer on Real Money.
In the daily bar chart of GPN, below, we can see a bullish configuration for prices and indicators. GPN is above the rising 50-day moving average line and a little bit extended above the bullish 200-day line. The pace of volume is slower in September than early August but the daily On-Balance-Volume (OBV) line has made a new high recently to confirm the price advance.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has narrowed recently towards a bearish crossover. A move lower in the MACD oscillator would be a take profits sell signal.
In the weekly bar chart of GPN, below, we can see that prices are above the rising 40-week moving average line. Prices have more than doubled in the past three years -- not too shabby of a return. The weekly OBV line is pointed up and the MACD oscillator is bullish, too.
In this Point and Figure chart of GPN, below, we can see a relatively nearby price target of $136.33. A decline below $118 is probably needed to weaken this chart.
Bottom-line strategy: Traders and investors could stay long GPN but sell stops should be raised to just below the top of chart support -- $119. $136 and then maybe $155 are the price targets.