A Real Money subscriber emailed me asking about the technical strength of Sealed Air Corp. (SEE) because it has been immune to the weakness in the broad market averages. "What do you see for this stock?" Let's check.
In this daily bar chart of SEE, below, we can see that prices have climbed higher the past 12 months. Prices have risen about 50% the past year and have stayed comfortably above the rising 200-day moving average line. Trading volume shows a pattern of increases on the rallies and lighter on minor corrections - a good sign.
The On-Balance-Volume (OBV) line shows a rising line the past year telling us that buyers of SEE have been more aggressive. Recently the OBV line shows a "touch" of softness.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but narrowing.
In this weekly Japanese candlestick chart of SEE, below, we see a mixed picture. Prices are in a longer-term uptrend and trade above the rising 40-week moving average line. The two most recent candle patterns show an upper shadow followed by a spinning top. These two candles suggest that perhaps SEE trades sideways a bit before renewed gains.
The OBV line shows a slight decline the past three months. The MACD oscillator is very close to a downside crossover.
In this daily Point and Figure chart of SEE, below, we can see that prices reached an upside price target.
In this weekly Point and Figure chart of SEE, below, we used a five box reversal filter. Here we can see a potential $89 price target.
Bottom line strategy: If you look at a lot of individual stock charts each day you should be impressed with the uptrend in SEE. SEE may trade sideways for a few weeks before renewed gains. Risk to $61.
