Citrix Systems (CTXS) is in an uptrend. Let me say that again - Citrix Systems is in an uptrend. Now that I have your attention, let's check the charts and indicators of this company that creates "software that allows the individuals of an enterprise to work and collaborate remotely regardless of device or network". Just what we need today.
In this daily bar chart of CTXS, below, we can see that prices have been in an uptrend since early August. Prices did decline in the second half of February but they have since rallied to new 2020 highs. Prices are above the rising 50-day moving average line as well as the slower-to-react 200-day moving average line. Trading volume has been increasing since early January telling us that more investors are being attracted to the bullish story.
The daily On-Balance-Volume (OBV) line has been rising since early August and is close to making a new high to confirm the price gains.
The Moving Average Convergence Divergence (MACD) oscillator made a cover shorts buy signal earlier this month and is now poised to cross above the zero line for an outright go long signal.
In this weekly bar chart of CTXS, below, we can see that prices have rallied over the past three years. Prices are above the rising 40-week moving average line.
The weekly OBV line has moved up the past three years and is very close to making a new high for the move up. This will help to confirm the rally and support the price gains.
The MACD oscillator is crossing back to the upside for a fresh outright go long signal.
In this Point and Figure chart of CTXS, below, we used daily price data to construct the chart. Here we can see the upside breakout at $131.30 and the potential price target of $213.
Bottom line strategy: Working remotely could be the new normal and that could go a long way to explaining the rally in CTXS. Traders could go long CTXS on any dip towards $135, risking below $120, looking for gains to the $213 area.
