Citrix Systems (CTXS) has soared to a new high today and the charts are much stronger than when we looked at them on May 21 when we wrote "The charts and indicators of CTXS do not currently present a compelling bullish story. Prices look like they can weaken slightly on the daily Point and Figure chart but more so on the weekly chart. I recommend a defensive stance for now."
Let's check out the charts of this software company again today.
In this updated daily bar chart of CTXS, below, we can see that prices were weak into late May and then worked higher into July before gapping to the upside today. The price pattern over the past three months looks like a rising or ascending triangle pattern. Prices are above the rising 50-day moving average line and above the bullish 200-day moving average line.
Even though prices of CTXS have moved sideways for most of the last four months the daily On-Balance-Volume (OBV) line has been rising the entire time telling us that buyers of CTXS have been more aggressive. This OBV strength confirms the price gains and foreshadows further gains ahead.
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment as it continues its rise above the zero line.
In this weekly bar chart of CTXS we see a bullish longer-term picture. Prices are above the rising 40-week moving average line.
The weekly OBV line is bullish and the MACD oscillator is turning up to a new buy signal.
In this daily Point and Figure chart of CTXS, below, we can see the upside breakout and a potential price target of $174.
In this weekly Point and Figure chart of CTXS, below, we can see the upside breakout and a potential price target of $209.
Bottom line strategy: Agressive traders could go long CTXS on any minor dip towards $160 risking a close below $150. $174 and $209 are our price targets.
