Coty Inc. (COTY) manufactures and markets various fragrances and skin care products. It is also a holding in TheStreet's Action Alerts PLUS portfolio.
The charts look ready for a fresh rise so let's set a strategy after a review of the indicators.
In the daily bar chart of COTY, below, I can see that the shares pulled back to the $10.50 area in March and again in May. Prices declined below the 50-day moving average line but rallied back to it this past Friday.
The trading volume looks like it was more active in the past four weeks or so. The On-Balance-Volume (OBV) line has trended sideways the past three months. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but is poised for a cover shorts buy signal.
In the weekly Japanese candlestick chart of COTY, below, I can see that the two most recent candle patterns have lower shadows. Lower shadows tell me that traders have rejected the lows and the odds favor an upside move from here.
The OBV line shows a rise followed by a leveling off. The MACD oscillator has crossed to the downside for a take profits sell signal.
In this daily Point and Figure chart of COTY, below, I can see a base pattern and an upside price target in the $24 area.
In this weekly Point and Figure chart of COTY, below, I can see the same $24 upside price target as the daily chart.
Bottom-line strategy: Traders could go long COTY at current levels risking a close below $10.50. The $24 area is our price target.
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