It looks like Worthington Industries (WOR) is ready to break out of a ten-month sideways trading range.
In this first chart of WOR, above, we can see some interesting price action. We can see a bullish divergence between the price action making lower lows and the momentum study making higher lows in August and September. The On-Balance-Volume (OBV) line climbs sharply with the rally in WOR, showing us that volume is confirming the move up. We also see WOR rally back above the 50-day simple moving average, and the slope of the average line is now positive.
This longer-term chart of WOR, above, gives us more confidence to be a buyer. The support WOR was finding around $25 is former resistance in the rallies of 2011 and 2013. The former resistance has become support. The OBV line on this time frame is positive and supportive of higher prices. The 40-week moving average has turned up.
Strategy: Go long WOR on a $32.50 buy stop and use a sell-stop below $29. Look for a rally into the highs of last year, around $40.