Atkore Inc ( ATKR) manufactures and supplies metal products and electrical raceway solutions. It is definitely not a household name but the charts and indicators show promise. Let's take a look.
In this daily bar chart of ATKR, below, we can see that prices traded sideways from November between the $90 area on the downside and around the $115 area on the upside. ATKR broke out above $120 the other day and is now making a "classic pullback" and retest of this sideways consolidation pattern. The slopes of both the 50-day and 200-day moving average lines are positive.
The On-Balance-Volume (OBV) line shows strength from early April as traders have become more aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of ATKR, below, we can see a positive looking picture. Prices have just made a new high for the move up. ATKR trades above the rising 40-week moving average line.
The weekly OBV line has inched higher the past two months and the MACD oscillator has crossed to the upside for a fresh outright buy signal.
In this daily Point and Figure chart of ATKR, below, we can see the upside breakout and the recent pullback. A price target in the $135 area is shown.
In this weekly Point and Figure chart of ATKR, below, we can see that the software is projecting a longer-term price target in the $161 area.
Bottom line strategy: Traders could go long ATKR when prices make an up close or close higher on the day - this will be a sign that the retest of the breakout zone is over, in my opinion. Risk to $105. The $135 area is our price target.
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I didn't like the idea of a cash deal at the start, but after going through the fundamentals, I think it's a wise move -- and here's why I'm adding the stock.
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