Bergh said there's no doubt the Levi brand is hot around the world. As the pandemic subsides, consumers are flocking to brands they know and love.
The U.S. remains a big opportunity for Levi, with many major cities still not having one of the company's signature locations.
Levi remains a trendsetter, Bergh noted. At the onset of the pandemic, they introduced looser-fitting styles that are more comfortable, and now, that trend has been picked up by other manufacturers.
We looked at the charts of LEVI back on October 8 when quarterly numbers were released. We wrote: "Continue to hold longs recommended earlier this week. Raise stop protection to a close below $13 now. Our price targets are $17 and $21 for now." Prices reached our $21 price target in January and have continued higher. Now what?
In this updated daily bar chart of LEVI, below, we can see that prices have moved higher this year. LEVI made a small dip in early February but it did not weaken the picture. Prices are trading above the rising 50-day moving average line and above the rising 200-day line. We can see a bullish golden cross buy signal back in early November.
The trading volume has been flat but the On-Balance-Volume (OBV) line has risen nicely since September and confirms the price advance. The Moving Average Convergence Divergence (MACD) oscillator has fluctuated above the zero line since October and looks poised now for another upside crossover and buy signal.
In this weekly Japanese candlestick chart of LEVI, below, we see a constructive picture. Prices are in an uptrend above the positively sloped 40-week moving average line.
The weekly OBV line is pointed up and the MACD oscillator has narrowed recently but is still pointed up and has not crossed to the downside.
In this daily Point and Figure chart of LEVI, below, we can see a new upside price target in the $28 area.
Bottom line strategy: LEVI has done well since our recommendation in early October. Raise stop protection to $22.50 from $13 and set $28 as your next price target.