In this daily bar chart of CBOE, below, I can see that prices have rallied over the past 12 months. CBOE broke out on the upside of a large consolidation pattern and trades above the rising 50-day moving average line and above the 200-day moving average line. The trading volume histogram shows increased trading volume since November and tells us there is increasing investor interest in the stock. The On-Balance-Volume (OBV) line has climbed to a new high and confirms the price gains since the middle of March. The Moving Average Convergence Divergence (MACD) is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of CBOE, below, I see a bullish chart picture. Prices are in a longer-term uptrend and trade above the rising 40-week moving average line. I see a string of white real bodies (bullish) on the latest candles. The OBV line has pushed above its 2021 and 2022 highs to confirm the price gains. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of CBOE, below, I can see the upside breakout on CBOE from the consolidation pattern. An upside price target in the $159 area is being projected.
In this weekly Point and Figure chart of CBOE, below, I can see a price target in the $183 area.
Bottom line strategy: The charts and indicators of CBOE are bullish. Traders should wait for a one or two day pullback in the price of CBOE before going long. Risk to $132 for now. $159 and $183 are my price targets.
(CBOE is a holding in the Action Alerts PLUS member club . Want to be alerted before AAP buys or sells stocks? Learn more now. )
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
The shares are down sharply after the retailer reported its latest earnings.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.