We reviewed artificial intelligence software company.C3.ai Inc. ( AI) on March 3, when I wrote that "I would prefer to see a price chart with a well established base pattern, but the charts of AI have turned to the upside. Hopefully AI is not a "flash in the pan" and the rally has staying power. Aggressive traders could go long AI at current levels risking to $19.50."
Let's check the charts again.
In this updated daily bar chart of AI, below, I can see that prices have traded sideways between $20 and $30, but now look poised for an upside breakout. AI trades above the rising 50-day moving average line and above the rising 200-day line. The trading volume has declined from its active level of early February. The On-Balance-Volume (OBV) line has been steady the past two months. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and has just crossed to the upside for a fresh outright buy signal.
In this weekly Japanese candlestick chart of AI, below, I see a bullish picture. Prices are trading above the rising 40-week moving average line. The candles are positive (white) and do not show me upper shadows. The weekly OBV line is strong and tells me that buyers are aggressive. The MACD oscillator is bullish as it is above the zero line.
In this daily Point and Figure chart of AI, below, I can see a potential upside price target in the $37 area.
In this weekly Point and Figure chart of AI, below, I see a price objective in the $69 area. A trade at $31 is needed to refresh the uptrend.
Bottom line strategy: Traders who went long AI on our recommendation earlier this month should continue to hold but raise stop protection to $22. Traders could add to longs above $31.