Alteryx Inc. (AYX) is scheduled to report its fourth-quarter results on Tuesday, Feb. 9. The company specializes in self-service analytics but I specialize in technical analysis, so let's check out the charts.
Our last review of the AYX charts on June 3 was not successful as we wrote that, "AYX looks like it will eventually break out above $160, but I would like to see signs of aggressive buying. When you see a stronger OBV line you could go long risking a close below $125. The $166 area is our first price target with $225 longer-term." The shares managed a rally to the $185 area in July but a huge downside price gap would have hurt investors in early August.
How do things look now?
In the daily Japanese candlestick chart of AYX, below, we can see that the shares have traded sideways since August with dips below $110 being bought. AYX has crisscrossed above and below the 50-day and 200-day moving average lines.
Trading volume has been shrinking during the pattern as the high/low range narrows. The On-Balance-Volume (OBV) line also moved sideways suggesting a balance between buyers and sellers. The Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line for several months.
In the weekly Japanese candlestick chart of AYX, below, we see a mixed picture. Prices have been narrowing in a large triangle pattern the past twelve months. The prior trend was up so the assumption is that the previous trend will continue when prices make a breakout. AYX is trading just below the 40-week moving average line.
The weekly OBV line has been "flattish" since April and the MACD oscillator recently gave a "cover shorts buy signal."
In this daily Point and Figure chart of AYX, below, we can see a "triple top breakout" and a price target in the $153 area.
Bottom-line strategy: Aggressive traders could approach the long side of AYX ahead of earnings risking to $109. If we get an upside breakout over $135 our target becomes the $153 area.