Citrix Systems, Inc. (CTXS) was last reviewed in early July. At that time, we wrote that support "can be seen starting at $75. A rally to $84 may be needed to get this chart looking more positive. With a bullish divergence from the momentum indicator, I would lean to the bull side and look to buy strength above $83 and $84 and then risk a close below $78."
Looking back at the price action since July, we can see that the $75 area did act as support in August and September for the provider of workspace services. The longer-term rally resumed and traders should have gotten long above $83 and $84. Now that prices recently made a new 52-week high, a fresh review of the charts and indicators is in order.
In this updated daily bar chart of CTXS, below, we can see that CTXS is trading above the rising 50-day moving average line and the rising 200-day line. Last month the 50-day line crossed above the slower-to-react 200-day line for a bullish golden cross buy signal. The daily On-Balance-Volume (OBV) turned up in late September and has made a new high for the calendar. The daily Moving Average Convergence Divergence (MACD) is above the zero line in positive territory and could cross to the upside if prices continue to strengthen.
In this weekly bar chart of CTXS, below, we can see that prices are above the rising 40-week moving average line. CTXS has spent much of the past three years above the 40-week line. The weekly OBV line has been in an uptrend since early 2016 and is still pointed up. The weekly MACD oscillator crossed to a cover-shorts buy in late September and moved above the zero line in October for an outright go-long signal.
In this Point and Figure chart of CTXS, below, we can see a breakout trade $88.19 (look for the "C" on the chart for the first entry of December). A nearby upside price target of $91.24 is projected, but other measuring techniques give us a $100 price objective.
Bottom line: Traders and investors who went long above $83 and $84 should continue to hold but raise sell stop protection to a close below $83. I am looking for gains to the $91-$92 area and then the round number of $100 in the weeks and months ahead.