Atmos Energy Corporation (ATO) emerged on the upside from a long base formation in 2011 and the rally is still going strong. Let's visit with the charts and indicators to see if this durable uptrend can continue.
In this daily bar chart of ATO, below, we can see an uptrend the past 12 months with confirmation from the On-Balance-Volume (OBV) line. The OBV line has risen with the price action and tells us that buyers of ATO are being more aggressive than sellers with heavier volume being traded on days that the stock has closed higher. Prices are above the rising 50-day moving average line and the rising 200-day line.
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line and rising.
In this weekly bar chart of ATO, below, going back three years, we can see another strong presentation. Prices are above the rising 40-week moving average line. The weekly OBV line has also been strong the past three years.
The weekly MACD oscillator has been above the zero line for most of the past three years and is currently poised to cross to the upside for a fresh outright go long signal.
In this Point and Figure chart of ATO, below, we can see the long rally from 2011. Prices have reached a long-term price target but with no distribution seen the trend should continue.
Bottom line: Pullbacks on ATO have been shallow and have not lasted long. With that kind of behavior traders looking to go long ATO should only look for a pullback to around $88 to probe the long side. Investors should risk below $83 and short-term traders below $86.
