Huntington Bancshares (HBAN) has soared recently, but our upside price targets have not yet been reached. Let's take a few minutes to review our charts and indicators to see if things remain on track.
In this one-year daily bar chart of HBAN, above, we can a broad sideways trading range/base pattern between $8 on the lower end and around $10.75 on the top side. Prices are well above the rising 50-day and 200-day moving averages. Volume does increase from late October to date, but the On-Balance-Volume (OBV) line is just not in gear. The OBV line rises nicely from January until early May, but then it works lower until mid-September. The OBV has been rising since September but it pales to the sharp price advance. The momentum study turned higher with prices, but it is not diverging from the price movement.
In this three-year weekly chart of HBAN, above, we can see how prices rapidly turned higher and changed the slope of the 40-week moving average line from down to up. The weekly OBV line, unlike the daily chart, has moved up steadily since June and suggests that buyers of HBAN have been aggressive for months in accumulating shares. The weekly MACD oscillator is above the zero line in bullish territory.
In this Point and Figure chart of HBAN, above, we have a long-term price objective of $21. How do we get to $21? Future gains won't probably be as steep as what we just saw and a sideways correction or consolidation won't be a surprise either. As long as we see heavier volume on up days and lighter volume on down days for HBAN, I will remain constructive.
