Teradyne (TER) made a small breakout the other day but looks poised to do more on the upside.
In this first chart of TER, above, we can see how an upside breakout is shaping up. First, TER only made a shallow summer decline. It rebased around $17 and rallied over the 50-day simple moving average. Buying dips to the 50-day have been a profitable strategy. The On-Balance-Volume (OBV) line is rising with the price action, confirming the strength of the advance. Also, we can see a September/October bullish divergence between the double bottom at $17 and the higher readings for the momentum study.
In this second chart of TER, above, we see the longer-term prospects for this stock. TER has been in a $16-$21 range for about two years. The OBV line is positive, and the Moving Average Convergence Divergence oscillator just gave a crossover below the zero line. TER is also above the 40-week moving average. The height of this two-year consolidation is $5 so that distance needs to be added to the breakout point for an upside target. A close above $21.25 should do it, giving us a $26 target. Use an appropriate sell-stop from your entry point.