Cintas (CTAS) shares were cut to a "hold" rating by sell-side firm Jefferies on Friday. Let's check out the charts and indicators of CTAS.
In this daily bar chart of CTAS, below, I can see that prices are retesting the December high. CTAS trades above the rising 50-day moving average line and above the rising 200-day line. The trading volume in March looks more active than previous months.
The On-Balance-Volume (OBV) line has moved up to a new high to confirm the price gains and tell us that buyers of CTAS have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator has just crossed above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of CTAS, below, I see a positive picture. The most recent candle pattern is a long white (bullish) candle. Prices are in a longer-term uptrend and trade above the rising 40-week moving average line.
The weekly OBV line shows strength from June. The MACD oscillator is above the zero line and poised for an upside crossover and fresh buy signal.
In this daily Point and Figure chart of CTAS, below, I can see a potential upside price target in the $539 area. A trade at $469.25 should refresh the uptrend.
In this weekly Point and Figure chart of CTAS, below, I can see the same price target as the daily chart above: $539.
Bottom line strategy: I am not ignoring the fundamental downgrade of shares of CTAS but rather I see no technical reason yet to turn neutral or even bearish.
