Cloudflare Inc. (NET) has been soaring higher in recent weeks and a fresh look at the charts seems in order today. We last reviewed the web infrastructure and website-security company on June 11, where we wrote to "continue to hold existing longs in NET. Risk a close below $26 now. $39 is our new price target."
Now that $39 has almost been reached let's check again.
In the updated daily bar chart of NET, below, we can see that prices have exploded higher in recent sessions. Prices are above the rising 50-day moving average line but we still do not have enough price history for a 200-day moving average line but the 190-day moving average line has a positive slope.
The daily trading volume has been increasing since the middle of February and tells us that more and more investors have been attracted to the story and the stock. This is classic chart reading and very bullish. The On-Balance-Volume (OBV) line has been rising from September and more aggressively since the middle of February.
The Moving Average Convergence Divergence (MACD) oscillator is bullish and pointed higher.