The price of UBS Group AG (UBS) has rallied sharply in recent days. Sharp rallies and equally sharp declines characterize the one-year daily bar chart (below), so the big question is whether UBS can break out on the upside with a weekly close above $18.50. An upside breakout, should it happen, could propel UBS to the low $20's in the months ahead.
In this daily bar chart of UBS, below, we can see that prices are now above the rising 50-day moving average line as well as the rising 200-day line. The daily On-Balance-Volume (OBV) line has been mostly neutral since April but it could be turning higher now. The trend-following Moving Average Convergence Divergence (MACD) oscillator just turned higher for an outright go long signal.
In this weekly bar chart of UBS, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has improved the past three months. The MACD oscillator could turn up or down with the price action.
In this Point and Figure chart of UBS, below, we can see that a trade up at $18.50 will be a breakout with a $24 price target.
Bottom line: UBS could keep climbing or it could make a sideways consolidation pattern in the $18.00-$18.50 area. A move above $18.50 is bullish and a close below $17.00 will be bearish.
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