'A' Is for Buying: Agilent Is Resuming Its Uptrend

Here's how traders can play the stock.

Agilent Technologies (A) is a leading company in life sciences, diagnostics and applied chemical markets. That's great, but we are looking for stocks that are leaders on the charts. Let's check to see if this is one.

In the daily bar chart of A, below, we can see that the shares have trended higher the past 12 months with only two shallow corrections until the deeper pullback in September/October. Prices broke below the 50-day moving average line and approached the rising 200-day line earlier this month.

Trading volume did not seem to increase on the decline, suggesting that traders largely held their positions. The On-Balance-Volume (OBV) line was steady, too, in recent weeks. The OBV line is close to a new high for the move up and could be foreshadowing price gains.

The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal. An outright buy signal may come soon. 

 

 

In the weekly Japanese candlestick chart of A, below, we can see a bottom reversal pattern -- a hammer with a long lower shadow followed by a bullish candle the next week for confirmation. Prices are trading above the rising 40-week moving average line.

 

The weekly OBV line is very firm and the MACD oscillator has crossed to the downside but looks ready to narrow. 

 

 

In this daily Point and Figure chart of A, below, we can see a potential upside price target of $183. 

 

 

In this weekly Point and Figure chart of A, below, we used a five-box reversal filter and here the software projects a target of $231. 

 

 

Bottom-line strategy: Traders could go long A at current levels risking a close below $145. The $183 area is our first target with $231 longer-term.

 

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