Knowles Corp (KN) is a provider of micro-acoustic, audio processing, and precision device solutions for various markets. Prices have climbed over the past two years with periodic corrections. A Real Money subscriber wants to know if the current pullback is a buying opportunity. Let's check the charts.
In this daily bar chart of KN, below, we can see that prices made a strong rally from October to early January. Prices have pulled back the past couple of weeks and are now trading below the cresting 50-day moving average line but above the 200-day moving average line. Buyers of KN came in just before the 200-day line was touched.
The On-Balance-Volume (OBV) line has moved up and down with the price action since October. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but has begun to narrow.
In this weekly Japanese candlestick chart of KN, below, we see a mixed picture. Prices bounced off the 40-week moving average line but so far not in a convincing fashion.
The OBV line shows some recent weakness with the start of a turn higher, hopefully. The MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of KN, below, we can see a long span of price history. Prices have made a new high for the move up but the software has not raised the price target from $21.50.
In this weekly Point and Figure chart of KN, below, we can see a huge and potentially very bullish bottom pattern on KN. This base should be able to support a significant advance.
Bottom line strategy: Patient investors could go long KN at current levels. Risk to $19.50. The low $30's is our price target.
