Intuit Inc. (INTU) has not been reviewed since the latter part of June where I wrote, "INTU is pointed up and probably headed higher to the $250 area next. Traders who are long should risk below $200 and investors below $185."
INTU has not (yet) reached our $250 price target but we can report that neither our recommended sell stop for traders below $200 nor our investor stop below $185 were elected. Still long but let's check the charts again.
(For more on INTU, see Jim Cramer: Valuations Now Have No Relation to Common Sense.)
In this updated daily bar chart of INTU, below, we can see that after some testing of the 50-day moving average line in August, prices are back above this indicator.
The 200-day moving average line has a positive slope but prices are about $40 above this slower-to-react indicator.
The On-Balance-Volume (OBV) line has been rising the past 12 months telling us that buyers of INTU have been more aggressive for some time now.
The Moving Average Convergence Divergence (MACD) oscillator is pointed up from the zero line but the two moving averages that make up this indicator have begun to narrow. A crossover to the downside would be a signal to take profits on longs.
In this weekly bar chart of INTU, below, we can see a bullish set up for our indicators. Price are above the rising 40-week moving average line.
The weekly OBV line is strong and confirms the price gains with its own new high.
The MACD oscillator on this longer time frame is turning up to a fresh outright go long signal.
In this Point and Figure chart of INTU, below, we can see that prices have reached and overshot a $214 price target.
Bottom line strategy: The rally in the share price of INTU seems to be in good technical shape. All sell stops could be raised to just below $210; $250 remains our upside price objective.