We have not looked at the charts of Masco (MAS) for a long time. Way back on Oct. 23, 2019 we were bullish with a $62 price target. Prices suffered a deep decline at the start of the pandemic, but eventually reached $62 May of this year.
Now prices are at new highs near $69, so a review of this designer, manufacturer and distributor of branded home improvement and building products is long overdue.
In this daily bar chart of MAS, below, we can see that prices have rallied very strongly since early October as Masco may get a boost from all the infrastructure building that lies ahead. MAS is trading above the rising 50-day moving average line, as well as above the rising 200-day line. The On-Balance-Volume (OBV) line has moved sideways since May but is very close to making its own new high to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of MAS, below, we see a mostly positive looking chart. Prices are in a longer-term uptrend above the rising 40-week moving average line. The weekly OBV line has mirrored the price swings -- both up and down. A new high in the OBV line would be a welcomed addition to the other positive signals. The MACD oscillator has turned upward to a new outright buy signal.
In this daily Point and Figure chart of MAS, below, we can see an upside price target in the $86 area.
In this weekly Point and Figure chart of MAS, below, we used a five box reversal filter to arrive at a $125 price target.
Bottom line strategy: Traders and investors looking for an infrastructure name to add to their portfolio could go long MAS around $68 risking to $63. The $86 area is our first price target but $125 is possible longer-term.
