The charts look in gear for auto-parts seller Monro Muffler Brake (MNRO), breaking out on the upside from a seven-month consolidation.
In this chart, above, we have price and volume aligned nicely. Prices have bounced off the rising 200-day moving average, first in May and again in August as buyers stepped in. Note how the On-Balance-Volume line (OBV) has broken out to a new high in September, in advance of the price action.
The price action and indicators over the past three years in this chart (above) show a steadily rising OBV line and the Moving Average Convergence Divergence oscillator mostly in the positive. This means no hard braking for this stock.
If prices for MNRO can stay on the road higher, our price target is the low $80s. A sell stop for traders could be placed below $65 and for investors at $61.
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This veggie name is rallying sharply after a summer promotion announcement, but here's my beef with the charts.
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