American Water Works ( AWK) is expected to report its latest earnings figures after the close of trading Monday.
I have not reviewed the charts of AWK since 2018 so we are almost starting from scratch. Let's take a last-minute check.
In the daily bar chart of AWK, below, we can see that the shares made a deep selloff in March but have subsequently recovered to post a new high. Prices are trading above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has moved higher from early March to confirm the price gains with signs of more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of AWK, below, we can see some "hesitation" around the $170 area. Prices are above the rising 40-week moving average line but the weekly OBV line has been moving sideways since early 2020 and has not confirmed the price gains.
The MACD oscillator is bullish but well below its 2020 high.
In this daily Point and Figure chart of AWK, below, we can see that prices just made a new high for the move up and the software is projecting the $198 area as a potential price objective.
Bottom-line strategy: The charts and indicators of AWK are mixed. There is a potential upside price target of $198 but traders who may be long should raise stop protection to $162 as risk or weakness from the broader market could drag down the price of AWK.
