• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Here's a Technical Strategy for Box Ahead of Earnings

Because the stock has been in a longer-term downtrend I'm in no big rush to go long.
By BRUCE KAMICH
May 26, 2020 | 10:50 AM EDT
Stocks quotes in this article: BOX

Box, Inc. (BOX) is a cloud computing company which provides file sharing, collaborating, and other tools for working with files that are uploaded to its servers. They are due to report their latest numbers Wednesday after the market close, and the company is expected by fundamental analysts to deliver a year-over-year increase in earnings on higher revenues for the quarter ended April 2020.  

 
Let's take a quick look at the charts and indicators.  
 
In this daily bar chart of BOX, below, we can see that prices have climbed sharply from the March nadir and have broken above the late November high. Prices are above the rising 200-day moving average line as well as the positively sloped 50-day moving average line.
 
The daily On-Balance-Volume (OBV) line has made a new high for the move up and broken above its late November peak. This tells us that buyers of BOX have been more aggressive.
 
The Moving Average Convergence Divergence (MACD) oscillator turned bullish in early April and still shows a bullish alignment.  
 
 
In this weekly bar chart of BOX, below, we can see that prices have been in a downtrend from early 2018. Prices are above the rising 40-week moving average line and they look like they are breaking the downtrend.
 
The weekly OBV line has been moving up from August 2019 and the MACD oscillator gave a cover shorts buy signal in early April and is now close to crossing the zero line for an outright buy signal.   
 
 
 
In this daily Point and Figure chart of BOX, below, we can see a relatively nearby price target in the $22 area. 
 
 
 
In this weekly bar chart of BOX, below, we can see the projection for a longer-term price target in the $28 area. 
 
 
Bottom line strategy: I have no special knowledge of the numbers due out on BOX Wednesday, but the charts are pointed up. Because the stock has been in a longer-term downtrend (chart above) I am in no big rush to go long. Traders could wait for a dip below $19 to buy risking a close below $17.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Software & Services | Technology | Earnings Preview

More from Investing

Alphabet Shares Should Continue to Live Higher

Bruce Kamich
Apr 21, 2021 3:11 PM EDT

Let's examine the charts of the 'G' in FAANG.

Will Clover Health Investments Turn Around?

Bruce Kamich
Apr 21, 2021 2:30 PM EDT

Let's take a look at 2 charts.

Novavax Is Poised for Renewal After Its Correction

Bruce Kamich
Apr 21, 2021 1:54 PM EDT

Here's our updated analysis and trading strategy.

Hewlett Packard Enterprises Has One of Those Charts That's So Tempting

Timothy Collins
Apr 21, 2021 1:46 PM EDT

I find this to be a half now, half on a confirmed breakout play.

I'm Not Trusting That the Worst Is Over

James "Rev Shark" DePorre
Apr 21, 2021 1:20 PM EDT

Even if this bounce does fizzle, it does help to create a new support level at the lows hit this morning.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 04:17 PM EDT REAL MONEY

    Wednesday on Real Money Pro

    Get-rich quick schemes offer little more than pipe...
  • 11:09 AM EDT GARY BERMAN

    S&P Futures

    FIBOCALL: The S&P futures was off 1.5 %... ...
  • 07:47 AM EDT CHRIS VERSACE

    Positive News for a Cannabis Play

    Good news for this name in the Stocks Under $10 po...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login