After reviewing the charts and indicators for Bank of Montreal (BMO) , I would get ready for an upside breakout. Looking at a daily bar chart of BMO, below, a pattern of higher lows and a rising On-Balance-Volume (OBV) line point to an upside move in the near future.
Let's review all our charts and indicators to give us a strategy.
In this daily bar chart of BMO, below, we can see prices are above the rising 50-day moving average line after a successful test of that line earlier this month. Prices are also above the rising 200-day line. The daily OBV line has been rising since early June and also making higher lows like the price action. The trend-following Moving Average Convergence Divergence (MACD) oscillator looks like it is crossing to the upside from just above the zero line. This crossover of this indicator would be an outright go-long signal.
In this weekly bar chart of BMO, below, we can see the pattern of higher lows goes back to 2016. Prices are above the rising/flattening 40-week moving average line. The weekly OBV line has been improving since August 2015 and shows a fresh move up since last June. The weekly MACD oscillator is in a bullish mode, but the two moving averages that make up this indicator have begun to narrow. This does not mean there will be a bearish crossover, but it is a possibility.
In this Point and Figure chart of BMO, we can see prices broke out of a double top at $76.72 and there is an upside price target of $95.38.
Bottom line: Traders could go long BMO on strength above $79 looking for gains to the $95-$100 area. A close below $75 would turn the charts bearish.