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.
