Insulation maker Owens Corning ( OC) is emerging from a base pattern that can support a sustained upside move. Let's check out the charts and plot a technical strategy to participate.
In this daily bar chart of OC, below, I can see an uptrend in progress from a low in September. Prices trade above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line shows that it has followed prices higher on rallies and dips on pullbacks. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of OC, below, I can see a large base pattern. Prices rallied into an early 2021 high and then corrected down into lows in mid to late 2022. OC has rallied above the now rising 40-week moving average line in early 2023 and now is testing the early 2021 peak.
The weekly OBV line shows a rise from November. The MACD oscillator is bullish. The most recent candle bar shows an upper shadow above $110 telling me there is some profit taking at the highs. Strength above $110 in the form of a white candle will be a sign the uptrend is continuing.
In this daily Point and Figure chart of OC, below, I can see that OC has reached an upside price of $102.
In this weekly Point and Figure chart of OC, below, I can see a price target in the $152 area.
Bottom line strategy: Traders could go long OC in the $110-$105 area risking to $102. On the upside I look for gains to the $152 area.
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