Change Healthcare CHNG is a healthcare technology provider of revenue cycle management, payment management and health information exchange. The CHNG chart is at an interesting juncture so this is a great time to check it out.
In the daily bar chart of CHNG, below, we can see that the shares gapped higher in early April but have become stalled at the $24 level. Prices have crisscrossed the 50-day moving average line. The slope of the 200-day line is positive.
The daily On-Balance-Volume (OBV) line shows uneven strength from late January. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line -- slightly positive.
In the weekly Japanese candlestick chart of CHNG, below, we can see that the $24 zone has capped the price strength for a long period of time. CHNG is trading above the rising 40-week moving average line.
The weekly OBV line shows some slight improvement from January. The two moving averages that comprise the MACD oscillator are on top of each other and are likely to turn higher is CHNG breakouts to the upside.
In this daily Point and Figure chart of CHNG, below, we can see that a trade at $24.19 will be a new high for the move up on this chart and it should refresh the uptrend. A price target of $25.50 is shown.
In this weekly Point and Figure chart of CHNG, below, we can see a downside price target in the $21 area.
Bottom-line strategy: Traders could go long CHNG on strength above $24.19 -- the breakout point on the Point and Figure chart.
