I am told that golf can be a frustrating game, but Callaway Golf (ELY) is poised to make a multi-year breakout that could soon prove rewarding to your short and long game (read capital gains).
ELY peaked in April, (see the chart above), and corrected down to a late September low. Prices quickly reversed to the upside and have been making slight new 52-week highs, while not quite breaking out. The On-Balance-Volume (OBV) line is supportive and the 50-day and 200-day moving averages have made a golden cross (the 50-day rallying above the 200-day).
In this second chart, above, I have left off most of the technical indicators as I want to focus on the price of ELY. Notice how the $10 level has stopped the advance in 2010, 2014 and twice this year. In the bottom panel notice how the OBV line has also failed to break out higher.
This point and figure chart, above, only plots price reversals and ignores volume. The chart is updated when prices move by 50 cents or more, and not when we move to a new trading day. A breakout for ELY will occur when ELY trades at $10.50 or higher. The chart also shows an upside price target of $15.50. A sell-stop at $9.60 is suggested.