Six Flags Entertainment (SIX) was upgraded today by TheSteet's quantitative service. Naturally, I took a look at the charts to see if they were aligned on the same page, so to speak. This upgrade combined with some bullish charts and indicators could enable the roller-coaster ride of SIX to set new highs.
Let's check out the rides (read charts) below.
In this daily bar chart of SIX, below, we can see prices are above the flat 200-day moving average line and above the rapidly rising 50-day line. Yesterday there was a quick intraday dip to the 200-day line and now prices are close to making a new high for the year.
The On-Balance-Volume (OBV) line has been strong the past two months, signaling aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator generated a take-profits sell signal last week, but the stock's recent price strength is turning this indicator bullish again.
In this weekly bar chart of SIX, above, we can see a three-year pattern of higher lows, but we have yet to make a higher high in the current cycle. Prices are above the flat 40-week moving average line. The weekly OBV line has not made a new high but it has turned more positive in the past two months. The weekly MACD oscillator is turning up above the zero line for an outright go-long signal.
In this Point and Figure chart of SIX, below, we can see the long rise from 2012 and the recent new high at $64. An $82 price target is projected.
Bottom line: Aggressive traders could buy SIX here and on further strength. Risk below $59 for now. Target the $80-$82 area.