Albertsons Companies Inc. (ACI) reported its second-quarter results before the opening bell here on Monday. The stock of the supermarket operator is moving up in pre-market activity on improved earnings and a 20% dividend increase, so let's take a quick look at the charts and indicators.
In this daily bar chart of ACI, below, we can see a decent-size base pattern or consolidation pattern in the $18-$20 area. Prices rallied from July into early September and then corrected lower into early October. Prices are trading below the cresting 50-day moving average line, but a strong close today could change that. The slope of the 200-day line is positive. The longer-term trend of the On-Balance-Volume (OBV) line has been up but we see a little softness from September into October, telling us that some traders may have been liquidating longs ahead of today's report. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but a good rally today could give us a cover shorts buy signal.
In this weekly Japanese candlestick chart of ACI, below, we see a generally positive picture. Prices are trading above the rising 40-week moving average line. The OBV line shows a rise for its entire history. The MACD oscillator is above the zero line but narrowed close to a take profits crossover. Strength today could start to turn the oscillator higher again.
In this daily Point and Figure chart of ACI, below, we can see that a rally to $32.60 might be needed to improve this picture.
Bottom line strategy: We do not have a lot of price history with ACI, but aggressive traders could do a little buying at current levels risking to $26. No target yet.
