EPAM Systems (EPAM) specializes in service development, digital platform engineering, and digital product design. The company is one of the world's largest manufacturers of custom software and consulting providers - high tech stuff - but I want to check out the charts.
In this daily bar chart of EPAM, below, we can see that prices plunged quickly and sharply from November to make a low in early March. EPAM recovered into early May and doubled off the March nadir. Prices have traded around the 50-day moving average line and remain below the declining 200-day moving average line.
The On-Balance-Volume (OBV) line has followed prices lower and then higher but the line shows weakness from early May even though prices have moved sideways. The Moving Average Convergence Divergence (MACD) oscillator is neutral as it hugs the zero line.
In this weekly Japanese candlestick chart of EPAM, below, we can see the action of the past three years. The decline in 2022 wiped out two years of gains. Trading volume surged into the 2022 low and that is a good sign as it can mean that weak hands sold to strong hands. A dramatic bottom reversal pattern can be seen in early March.
The trend is now neutral and the weekly OBV line is also neutral. The MACD oscillator has signaled a cover shorts buy signal but is a long way from an outright buy signal.
In this daily Point and Figure chart of EPAM, below, we can see that the software is projecting a potential upside price target in the $453 area.
In this weekly Point and Figure chart of EPAM, below, we can see a downside price target in the $192 area.
Bottom line strategy: The charts and indicators of EPAM are mixed. I anticipate further sideways price action with a risk of a new decline. Avoid for now.
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