Masco Corp. (MAS) was upgraded to a Buy recommendation by TheStreet.com's quantitative service Wednesday. Let's check out the charts and indicators to see if we are both on the same page.
In this daily bar chart of MAS, below, we can see that prices have been making higher highs since the end of July. A new high was made in September and again this month. MAS is above the rising 50-day and the bullish 200-day moving average line.
The daily On-Balance-Volume (OBV) line has been in an uptrend since late December and confirms the price gains. Aggressive buyers have been active for the past year and that's a strong positive for future gains.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a bullish configuration.
In this weekly bar chart of MAS, below, we can see that prices are above the rising 40-week moving average line and not far from the prior high around $46.
The weekly OBV line has strengthened from the middle of August and is close to breaking the downtrend in the line from early 2018.
The MACD oscillator is bullish and rising.
In this close only Point and Figure chart of MAS, below, we can see a tentative upside price target of $62 being projected.
Bottom line strategy: The chart of MAS look bullish and a quantitative buy recommendation only helps the bull case. Traders could go long MAS at current levels risking a close below $41 while looking for gains to the $62 area.
