Every weekday, I pore over an email from TheStreet's quantitative service. I look over the upgrades and downgrades for stocks that have promising chart patterns or ones that should be avoided. Today, HollyFrontier (HFC) was upgraded and there I found a strong stock that is heading higher.
In this daily bar chart of HFC, below, we can see a rounded bottom formation that broke out on the upside in September. Prices are above the rising 50-day and 200-day moving averages. There is a bullish golden cross of these two indicators in late August before prices began to accelerate on the upside.
The volume of trading has increased since July and the On-Balance-Volume (OBV) line has been rising from the bottom in early June. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since late June.
In this weekly bar chart of HFC, below, we can see a strong base formation since early 2016 with prices now above the rising 40-week moving average line. The weekly OBV line has been rising since March and the weekly MACD oscillator has been above the zero line and bullish since August.
In this Point and Figure chart of HFC, below, we can see an upside price target projected. The price target is $55 but a breakout over $49 may yield a higher target when we get there.
Bottom line: I really like it when a stock is upgraded and the charts and indicators are bullish. Trade HFC from the long side risking a close below $34. Our initial upside price target is $55.