Azek Company (AZEK) is a manufacturer of decking materials and other products for outdoor living. The housing market has been contracting in reaction to sharply higher mortgage rates, but the charts of AZEK have been improving in recent months.
TheSteet.com's quantitative service upgraded shares of AZEK Friday so let's check out the charts. 
In this daily bar chart of AZEK, below, I can see that prices have been making a saucer bottom or rounding bottom pattern since April. Prices made a low in October and have started to improve.
AZEK now trades above the rising 50-day moving average line and above the bottoming 200-day line. The trading volume has increased in the past five weeks and that tells me that the price gains are attracting more attention. The On-Balance-Volume (OBV) line made lows in May and June. The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line in buy territory.
In this weekly Japanese candlestick chart of AZEK, below, I see an improving technical picture. Prices are now trading above the 40-week moving average line. The weekly OBV line shows improvement from a June low. The MACD oscillator has been improving since May and is now only slightly below the zero-line.
In this daily Point and Figure chart of AZEK, below, I can see an upside price target in the $29 area.
In this weekly Point and Figure chart of AZEK, below, I used a five box reversal filter. Here the software suggests a price target in the $38 area.
Bottom line strategy: AZEK is what I call a "knock on" trade. The first trade is the housing market slowing. The second, or knock on, trade is that people will be staying in their current house and fixing it up with a new deck (think of auto parts stores doing better as people hang onto their cars longer) or a new kitchen or something else. AZEK could continue to trade sideways for several more weeks or even months. A breakout over $24 on strong volume would be my buy signal.
