Shares of KLA Corp. (KLAC) have jumped up around $100 in May. Are there more gains ahead or should we get ready for a correction? Let's check the charts and indicators.
In this daily bar chart of KLAC, below, I can see how prices broke out on the upside in May to establish new 52-week highs. KLAC is trading above the rising 50-day moving average line and above the rising 200-day line. The trading volume shows an increase in the second half of May. The On-Balance-Volume (OBV) line looks like it has bottomed in May. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of KLAC, below, I can see the last three years of price history. Prices are making new highs. KLAC trades above the rising 40-week moving average line. The weekly OBV line shows improvement from October. The MACD oscillator has turned upwards again above the zero line.
In this daily Point and Figure chart of KLAC, below, I can see that prices have reached and exceeded a $455 price target.
In this weekly Point and Figure chart of KLAC, below, a price target of $667.
Bottom line strategy: I would anticipate KLAC to make a choppy sideways trading pattern between $435 and may $465 for a couple of weeks. After this sideways period of trading I would look for KLAC to resume its uptrend. Trade accordingly.
