The Duckhorn Portfolio ( NAPA
) includes Duckhorn Vineyards, Paraduxx, Goldeneye, Migration, Decoy, Canvasback, Calera, Greenwing, Postmark, and Kosta Browne, each with its own dedicated winemaker. (I have a bottle of Decoy Cabernet Sauvignon 2019 waiting for a nice steak.) The company reports their latest numbers after the close of trading today so let's check out the charts.
In this daily bar chart of NAPA, below, we can see that prices worked lower into late September when a shift began. Prices turned higher on increased volume. NAPA rallied above the 50-day moving average line and its slope has turned positive.
The On-Balance-Volume (OBV) line has improved from early October telling us that buyers of NAPA are being more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed above the zero line for an outright buy signal. In the short-term we could see the MACD oscillator weaken.
In this weekly Japanese candlestick chart of NAPA, below, we can see some improvement. Traders have rejected prices below $14 and we can see a large lower shadow in September.
The slope of the 40-week moving average line is still negative but the OBV line shows improvement and the MACD oscillator has crossed upwards for a cover shorts buy signal.
In this daily Point and Figure chart of NAPA, below, we can see a downside price target in the $14 area.
In this weekly Point and Figure chart of NAPA, below, we can see an upside price target in the $19 area.
Bottom line strategy: Traders could make a trip to the liquor store and try some of the wines that NAPA makes. Due diligence. Others could look to probe the long side of NAPA on a dip to $14 and risk to $13.50. The $19 area is our price target.