Tool manufacturer Snap-On (SNA) made price lows back in June and July and has rallied strongly. Prices are in a position now to break out higher as they probe the early 2021 highs. Let's check out the charts and indicators to see if an upside breakout is in the tool box.
In this daily bar chart of SNA, below, I see a mixed picture. Prices are in an uptrend trajectory and trade above the rising 50-day moving average line and above the rising 200-day line. The trading volume shows a little strength from the middle of August.
The On-Balance-Volume (OBV) line shows a mixed outlook with rises in July and January but weakness in between those rallies. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but is making a bearish divergence when compared to the price action.
In this weekly Japanese candlestick chart of SNA, below, I see another mixed picture. Prices have made an "upper level" saucer bottom pattern the past two years. The price movement looks right but the trading volume does not show a matching saucer pattern which is typical. The slope of the 40-week moving average line is bullish.
The weekly OBV line has been stalled the past two years and even a slight rise would be welcome. The MACD oscillator is above the zero line and rising but may have started to narrow (hard to tell).
In this daily Point and Figure chart of SNA, below, I can see a potential upside price target in the $305 area.
In this weekly Point and Figure chart of SNA, below, I can see a $328 price objective.
Bottom line strategy: Aggressive traders could go long SNA around $250 and then above $260. The round number of $300 is our first price target. Risk to $240.
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