If you are trading Ashland Global Holdings Inc. (ASH) you have to operate from the long side. This stock has climbed and climbed and corrections have either been sideways affairs or relatively shallow pullbacks - just what you want. Let's go through our usual routine of looking at a combination of charts and indicators to see where to buy ASH, what to risk, and any price targets from a technical basis.
In this daily bar chart of ASH, below, going back over the past 12 months we can see that prices have spent a lot of time above the rising 50-day simple moving average line. ASH has been above the slower-to-react 200-day moving average line since late January of this year and successfully retested this line in August and early September.
While the On-Balance-Volume (OBV) line has not (yet) made a new high to confirm the new price highs it still has a generally positive slope the past year and tells us that buyers of ASH have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line much of the past year and is currently in a bullish mode.
In this weekly bar chart of ASH, below, we can see that prices have been above the rising 40-week moving average line all year. The weekly OBV line has been rising the past three months and is close to making a new high which will go a long way to supporting the rally. The weekly MACD oscillator just crossed to the upside for a fresh outright go long signal.
In this Point and Figure chart of ASH, below, we can see a large consolidation pattern across the mid-$50s and a break out to the upside around $61. The sideways movement when projected upward gives us an $86.25 price target.
Bottom line: I like the charts and indicators on ASH. Traders and investors could go long ASH near $68, if available, and on strength above $68.75, looking for a rally to the $85-$90 area in the months ahead.