Masco (MAS) looks like it can rally to the next round number of $50 based on signs of continued accumulation. Let's drill down through the charts and indicators to explain our bullish stance.
In this daily bar chart of MAS, below, we can see the rally since early December taking MAS higher with a couple of sideways or shallow corrections. MAS is testing the rising 50-day moving average line and is comfortably above the rising 200-day moving average. The On-Balance-Volume (OBV) line has been rising since the middle of April and it has been steady as prices have dipped from their October high. A steady OBV line in a falling market suggests investors are staying with their positions and not liquidating them as prices retreat. The trend-following Moving Average Convergence Divergence (MACD) oscillator gave two take-profits sell signals in October and is close to testing or crossing the zero line.
In this weekly bar chart of MAS, below, we can see prices have doubled over the past three years. The 40-week moving average line has been pointed up the entire time. The weekly OBV line has been moving up but really has not kept up with the price gains. The MACD oscillator shows a lower high from the price action and suggests some caution might be warranted for recent longs.
In this Point and Figure chart of MAS, below, we reduce the chart of just the price action -- no indicators, no news. Prices are in an uptrend with no distribution patterns. An upside price target of $50.30 is indicated.
Bottom line: MAS might build a higher level base in the $37-$40 area before renewed strength is seen. Our upside price target is $50. A close below $36 would change our opinion.