Alteryx Stock Is Bottoming: Here's How to Play It

We can see a bottoming pattern from January.

The Alteryx (AYX) platform allows companies to answer business questions quickly and efficiently. The platform can be used as a major building block in a digital transformation or automation initiative.

Let's check and see if shares of AYX can help build your portfolio. 

In the daily bar chart of AYX, below, we can see a bottoming pattern from January. Using your imagination you may be able to see a left shoulder in January/February. A head in June/July. A right shoulder is underway but the big question is the neckline.

Does the neckline intersect at $70 or $75? If the neckline is at $70 then we wonder why we have not yet broken out higher. If the neckline comes in at $75 then we have time to do some buying in anticipation of an upside breakout.

The shares are trading above the 50-day and 200-day moving average lines. The daily On-Balance-Volume (OBV) line has moved higher since February telling us that buyers of AYX have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment. 

 

 

In the weekly Japanese candlestick chart of AYX, below, we see an improving picture. Prices are trading above the bottoming 40-week moving average line.

 

The weekly OBV line has been slowly improving from February. The MACD oscillator is just below the zero line and close to a crossover and a buy signal. 

 

 

 

In this daily Point and Figure chart of AYX, below, we can see a bullish price target of $87. A trade at $70 will refresh the uptrend. 

 

 

 

In this weekly Point and Figure chart of AYX, below, we can see a $115 price target being projected. 

 

 

 

Bottom-line strategy: Traders could either probe the long side of AYX below $65 risking to $58 or buy strength above $70. The $87 area is our first price target. 

 

Employees of TheStreet are prohibited from trading individual securities.