MasTec (MTZ) is a top power plant and renewable energy construction company that just posted a Q4 top and bottom line beat and initiated a FY23 outlook. The stock was lower in early market trading.
Let's check out the charts and indicators.
In this daily bar chart of MTZ, below, I see two trends over the past 12 months. First, there is a downward trend from March to October. Second, there is an upward movement from October into February.
Prices are above the rising 50-day moving average line but we could see that line tested or even broken in the days ahead. The slope of the 200-day moving average line turned positive three months ago.
The daily On-Balance-Volume (OBV) line has improved from its October nadir. The Moving Average Convergence Divergence (MACD) oscillator shows lower highs from November to February for a bearish divergence when compared to the price action.
In this weekly Japanese candlestick chart of MTZ, below, I see a promising looking pattern. Prices rallied from 2020 to 2021 and then slowly corrected lower into the middle of 2022. MTZ rallied above the 40-week moving average line and now the slope of the 40-week line is positive.
The weekly OBV line shows a bullish pattern for the past three years - amazing. The MACD oscillator is above the zero line in bullish territory but the two moving averages that make up this indicator have been narrowing which can foreshadow a bearish crossover.
In this daily Point and Figure chart of MTZ, below, I can see that the software is projecting a potential downside price target in the $86 area.
In this second Point and Figure chart of MTZ, below, I used weekly price data. Here the software also gives us an $86 price target.
Bottom line strategy: MTZ has been in a bull move from 2017 (chart not shown) and I am viewing corrections to that major trend to be buying opportunities. A pullback to the rising 40-week moving average line could be a buying opportunity. Use an appropriate stop loss order.
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