Infrastructure engineering software solutions company Bentley Systems ( BSY) has been making a bottom pattern on the charts the past several months. Let's check out the charts and indicators.
In this daily bar chart of BSY, below, we can see what I believe is a bottom pattern playing out since February. Prices have crossed above and below the 50-day moving average line a number of times but are now trading above the bottoming 200-day moving average line and the rising 50-day line. The trading volume has been increasing since July.
The On-Balance-Volume (OBV) line shows a low in May and a second low in October. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of BSY, below, we see a positive looking picture. Prices are trading above the bottoming 40-week moving average line. The trading volume has been improving since July.
The weekly OBV line shows some improvement in October and November. The MACD oscillator has been improving for months but still needs to cross above the zero line for a buy signal.
In this daily Point and Figure chart of BSY, below, we can see an upside price target in the $46 area.
In this weekly Point and Figure chart of BSY, below, we see the same price target as the daily chart (above), $46.
Bottom line strategy: Traders could begin to probe the long side of BSY on a dip to the $38 area. Risk to $35. The $46 area is our price target.
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