Cree, Inc. (CREE) , which reports fiscal Q4 earnings Tuesday, is getting close to a long-term upside breakout. Let's check out the charts of this innovator and manufacturer of lighting-class LEDs, LED lighting, and semiconductor products for power and radio frequency applications.
In this daily bar chart of CREE, below, we can see how prices have behaved the past 12 months. Prices made a relatively shallow decline from January into March, and a spectacular rally since the middle of March.
Prices are above the rising 50-day moving average line and above the rising 200-day moving average line. We can also see a bullish golden cross of these two indicators in June as the 50-day line crossed above the slower-to-react 200-day line.
The On-Balance-Volume (OBV) line has improved from an April low and tells us that buyers of CREE have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator turned bullish at the end of April and now is poised to turn higher again.
In this weekly bar chart of CREE, below, we can see that prices have broken out over the highs of 2019. Prices are above the rising 40-week moving average line.
The OBV line is strong and close to making a new high. The MACD oscillator is in a very bullish alignment and has broken above the high for this indicator set in 2019.
In this monthly bar chart of CREE, below, we can see that prices have made higher lows since 1995. Incredible. On the upside, rallies around and above $80 have failed. A breakout over $80 could be the start of a significant rally.
In this Point and Figure chart of CREE, below, we used weekly close only price data. Here we can see that a trade at $74 will be an important upside breakout and the software is projecting the $97 area as a price target.
In this second Point and Figure chart of CREE, below, we used weekly close only data again but increased the reversals to five boxes from three boxes. $74 is still a major upside breakout but here the longer-term price target measures to the $224 area.
Bottom line strategy: Traders and investors could go long CREE at current levels and add to longs above $74. Risk a close below $65 for now. $97-$100 is our first upside price target with the $225 area longer-term.
