Truck maker Paccar (PCAR) was raised to a "buy" recommendation by Jefferies Monday. The sell-side firm gave it a $115 price target.
Let's check and see what the charts and indicators are doing.
In my May 18 review of PCAR I wrote that "Traders could go long PCAR at current levels risking to $67. Add to longs above $74. The $90 area is my price target for now."
In the daily bar chart of PCAR, below, I can see that the shares have rallied strongly from late May. Prices are trading above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line has been on a steady upward path the past year and tells me that buyers of PCAR have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of PCAR, below, I can see a strong move underway. The shares are in an uptrend and trade above the rising 40-week moving average line.
The weekly OBV line shows us a strong move up since late September. The weekly MACD oscillator is in a bullish move now. The latest candle shows an upper shadow but renewed strength is the more likely path for prices.
In this daily Point and Figure chart of PCAR, below, I can see a price target in the $102 area.
In this weekly Point and Figure chart of PCAR, below, I can see the same $102 price target.
Bottom-line strategy: Traders who are long PCAR from my earlier recommendation should continue to hold. Raise stops to $81 from $67. The $102 area is my price target after $90.
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