Shares of DXC Technology (DXC) have soared sharply higher in recent days. The company helps global firms run their mission-critical systems and operations while modernizing IT and optimizing data architectures -- cutting-edge stuff.
Let's check out the charts to come up with a trading strategy.
In the daily bar chart of DXC, below, we can see that the shares have shot dramatically higher this month crossing above the 50-day moving average line and the 200-day moving average line. Trading volume shows an increase so far this calendar year. The daily On-Balance-Volume (OBV) line shows a fresh rise from early March signaling a turn towards more aggressive buying by traders.
The Moving Average Convergence Divergence (MACD) oscillator is about to cross above the zero line for a new outright buy signal.
In the weekly Japanese candlestick chart of DXC, below, we can see that the shares have rallied above the 40-week moving average line.
The weekly OBV line is improving while the MACD oscillator has narrowed and is close to an upside crossover and cover shorts buy signal.
In this daily Point and Figure chart of DXC, below, we can see that this charting software is projecting the $49 area as a potential upside price objective.
In this weekly Point and Figure chart of DXC, below, we can see the same $49 price target as seen above on the daily chart.
Bottom-line strategy: Aggressive traders could go long DXC in the $36-$34 area assuming that prices form a sideways consolidation pattern. Risk to $32 while looking for gains to the $49 area for now.
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