Specialty coatings, sealants and building materials maker RPM International (RPM) made a very respectable rally in the second half of 2022. What's next? Let's see how the charts and indicators are positioned.
In this daily bar chart of RPM, below, I can see that prices made lows in March and June and then launched an upside move into late August followed by a pullback. Another rally started in late September and now prices have pulled back to the rising 50-day moving average line. Prices crisscrossed the 200-day moving average line but one last (?) downside test of the 200-day in October set the stage for a year end rally.
Trading volume has been active all year telling me that traders and investors find the stock attractive while the On-Balance-Volume (OBV) line only shows some strength from early October. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside and is only slightly above the zero line.
In this weekly Japanese candlestick chart of RPM, below, I can see that prices were in a long sideways trading range from the middle of 2020. Prices finally broke out on the upside from this consolidation pattern in November. RPM is now trading above the rising 40-week moving average line.
The weekly OBV line has been struggling since March but the trading volume has remained good. The Moving Average Convergence Divergence (MACD) oscillator is bullish but narrowing which means that the trend strength shows some weakness.
In this daily Point and Figure chart of RPM, below, we can see RPM pulling back with a possible downside price target in the $89 area being projected.
In this weekly Point and Figure chart of RPM, below. I can see a potential upside price target in the $128 area.
Bottom line strategy: Aggressive traders could go long RPM at current levels risking to $94. On the upside the $128 area is our price target for now.
