For Praxair, I Look For a Sideways Trading Range

 | Dec 19, 2017 | 2:20 PM EST
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Praxair, Inc. (PX) has made a strong and impressive rally this year building on the gains of 2016. What can PX do from here? Let's check the charts and indicators.

In this daily bar chart of PX, below, we can see that prices are above the rising/bullish 50-day moving average line as well as the rising 200-day line. Volume has increased since late October and the On-Balance-Volume (OBV) line has been rising from March. A second upside phase in the OBV line began in early September and helps to confirm the advance. The trend-following Moving Average Convergence Divergence (MACD) oscillator is poised to cross to the upside for a fresh outright go long signal.

In this weekly bar chart of PX, below, we can see that PX is showing one of its widest points above the rising 40-week moving average line. The weekly OBV line shows a decline in recent weeks and the MACD oscillator looks like it could cross to the downside with a take profits sell signal.

In this Point and Figure chart of PX, below, we can see the uptrend from the middle of 2016. An ambitious price target of $191 is shown but a new high of $157.05 is needed to "refresh" the uptrend. Further sideways price action or consolidation is probably likely when combining this chart with the weekly signals.

Bottom line: I would look for PX to trade sideways between $156 and $145 or so for several weeks. Eventually I would anticipate that PX does start another uptrend, but I don't think it is going to happen right now.

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