A Real Money subscriber asked about the charts of Skyline Champion (SKY) , a company that designs, produces, and markets manufactured and modular homes. Let's check out the charts.
In this daily bar chart of SKY, below, we can see that prices have made an impressive rise the past 12 months. SKY is trading above the rising 50-day and the bullish 200-day moving average lines. The On-Balance-Volume (OBV) line shows a strong rise from May. The Moving Average Convergence Divergence (MACD) oscillator has spent most of the year above the zero line telling us that the strength of the uptrend is strong.
In this weekly Japanese candlestick chart of SKY, below, we see a strong longer-term uptrend. Prices are trading above the rising 40-week moving average line. The weekly OBV line shows a strong rise from early 2020 telling us of months of more aggressive buying. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of SKY, below, we see a potential downside price target in the $53 area. There appears to be plenty of support below the market and a trade at $83 is likely to turn the chart bullish.
In this weekly close only Point and Figure chart of SKY, below, we used a five-box reversal filter. Here the chart yields a long-term price target in the $310 area.
Bottom line strategy: I don't know if the fundamentals can still support higher prices but the charts and indicators do. Risk to $69 if you are a buyer.
