Copa Holdings (CPA) is a leading Latin American provider of airline passenger and cargo services. The company was upgraded to an "overweight" rating by a sell-side firm Friday so a fresh look at the charts and indicators is worthwhile.
In the daily bar chart of CPA, below, we can see that the shares have held the $66-$64 area a number of times. CPA has crisscrossed the 50-day and 200-day moving averages several times in the past 12 months. I find it "interesting" that the tops and bottoms on this chart have been quick-turning affairs.
Trading volume has increased since November and that too is "interesting." Typically volume decreases in top patterns from left to right -- the biggest volume happens early in a top. In bottoms we often see volume increase through the pattern. Has CPA been making a bottom or a top? The On-Balance-Volume (OBV) line has weakened since February.
The 12-day price momentum study shows a higher low from March to May even though prices made equal lows. This is a bullish divergence and could prompt a rebound.