DXC Technology (DXC) appears to be making a turnaround on the charts. Let's check the chart of the information technology company to see what may be head.
In this daily bar chart of DXC, below, I can see a downward trend with a low in late September. Prices are trading below the declining 50-day moving average line and below the declining 200-day line. The trading volume shows heavy turnover in September and early October, suggesting a shift in ownership from weak hands to stronger hands. The daily On-Balance-Volume (OBV) line shows an uptrend from March, which suggests a long period of accumulation (buying). The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of DXC, below, I can see positive developments. Prices are still in a longer-term decline and trade below the declining 40-week moving average line. The weekly OBV line has shown improvement from August. The MACD oscillator generated a cover shorts buy signal in October but is still below the zero line. The candle patterns in December are mixed -- one shows a large upper shadow and the next one has a small real body.
In this daily Point and Figure chart of DXC, below, I see the software is projecting a potential downside price target in the $23 area.
In this weekly Point and Figure chart of DXC, below, I can see an upside price target in the $38 area. A trade at $31 is needed to refresh the uptrend.
Bottom line strategy: Sometimes I like to imagine how prices may move. Right now I am imagining DXC declining to the $24 area and holding. This could look like a lopsided double-bottom pattern. Traders at that point could probe the long side, risking below $22. Let's see how things play out.
