Shares of Hologic (HOLX) soared higher in early June and have continued higher. Prices have climbed back to its early 2021 highs and the key question is whether HOLX can keep the rally going.
In this daily bar chart of HOLX, below, I can see a number of positive clues. Prices are in an uptrend and trade above the rising 50-day moving average line and above the rising 200-day line. The On-Balance-Volume (OBV) line has responded on the upside from late October.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since early November but the two moving averages that comprise this indicator have narrowed which tells us that the uptrend could be vulnerable.
In this weekly Japanese candlestick chart of HOLX, below, I can see that prices are testing the highs of early 2021 in the $85 area. Prices are trading above the rising 40-week moving average line. Trading volume does not appear to expand but the weekly OBV line does show a rise from the middle of October. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of HOLX, below, I can see an upside price target in the $97 area.
In this weekly Point and Figure chart of HOLX, below, I can see a breakout at $86 and a price target of $108.
Bottom line strategy: Traders could probe the long side of HOLX on a dip to $82 risking to $79.
