The stuff that Atkore (ATKR) makes -- steel tubes and pipes, electrical conduit, armored wire and cable, cable trays, metal framing systems, and building components -- seem to be in demand. On top of that, its charts are bullish.
Let's work up a strategy to go long.
In the daily bar chart of ATKR, below, we can see that the shares have climbed five-fold in just the past 12 months. Is there more room to rise? Let's look closer.
ATKR is in an uptrend and earlier this month made a successful test of the rising 50-day moving average line. The slope of the 200-day line is also positive.
The On-Balance-Volume (OBV) line shows a longer-term rise but has been moving sideways the past two months. The Moving Average Convergence Divergence (MACD) oscillator is trying to resume its upside move.
In the weekly Japanese candlestick chart of ATKR, below, we can see a two-year base in the $20 area. This base has been able to support a strong advance. Recently, we can see that prices are making a high-level consolidation pattern that could support still further gains in the months ahead. ATKR is trading above the rising 40-week moving average line but not overbought when compared to this indicator.
The weekly OBV line is bullish with only a two-month stall. The MACD oscillator is bullish.
In this daily Point and Figure chart of ATKR, below, we can see an upside price target in the $142 area.
In this weekly Point and Figure chart of ATKR, below, we can see a potential price target in the $158 area.
Bottom-line strategy: Aggressive traders could go long ATKR at current levels risking below $79. The $142 area and then the $158 area are our price targets for now.
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