On Holding AG (ONON) is a holding company and through its subsidiaries, provides footwear and sports apparel products. The company is up sharply today on the heels of a better than expected earnings report with strong sales and margin expansion.
Let's check out the charts and indicators.
In this daily bar chart of ONON, below, I can see that prices have gapped sharply higher Tuesday. Prices made a new high for the move up and have broken above highs going back to August. Trading volume is heavy.
The daily On-Balance-Volume (OBV) line has shot higher telling me that traders are being more aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator is turning upwards to a new outright buy signal.
In this weekly Japanese candlestick chart of ONON, below, I can see a potentially promising picture. Prices are trading above the bottoming 40-week moving average line. The weekly OBV line shows strength from the middle of December. The MACD oscillator has crossed above the zero line for an outright buy signal.
In this daily Point and Figure chart of ONON, below, I can see an upside price target in the $40 area. Note that Point and Figure charts do not show price gaps.
In this weekly Point and Figure chart of ONON, below, I can see a price target in the $43 area.
Bottom line strategy: We have higher price targets for ONON so we want to be a buyer at some point but the rub is what to risk. The price of ONON could easily pullback after today's steep gains. Traders could try to buy ONON on a dip to $26 risking to $23. The $40-$43 area is my upside price objective.
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