On Tuesday we are due for earnings from grocery chain Albertsons (ACI) , so let's see how the charts are positioned. We looked at ACI on October 18 and recommended, "We do not have a lot of price history with ACI, but aggressive traders could do a little buying at current levels risking to $26. No target yet."
Let's check on the charts again.
In this updated daily bar chart of ACI, below, we can see that prices rallied nicely following our October 18 review. ACI made a high in early December followed by a correction to a higher low. ACI is trading just below the 50-day moving average line but above the rising 200-day line.
The On-Balance-Volume (OBV) line has been moving sideways in a steady fashion since September and is close to making a new high. A rising OBV line is a sign that buyers are being more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside from below the zero line for a cover shorts buy signal.
In this weekly Japanese candlestick chart of ACI, below, we can see that a couple doji patterns and a spinning top marked a low in price in December. The slope of the 40-week moving average line is bullish. The weekly OBV line is going in the right direction and the next observation should see the MACD oscillator begin to narrow.
In this daily Point and Figure chart of ACI, below, we can see an upside price target of $38.
Bottom line strategy: Continue to hold longs from October. Raise stops to $29 from $26. The $38 area is our target for now.
