It is a rare occurrence lately to find a strong-looking chart that has made an upside breakout. Genuine Parts Co. (GPC) has made an upside breakout and further gains look possible. Let's see what is under the hood of this automotive and industrial replacement parts company.
In this daily bar chart of GPC, below, we can see that prices have rallied since early March and have broken out above all the highs since early January. Hard to think of another stock that looks this strong. GPC is trading above the rising 50-day moving average line and above the rising 200-day line. The trading volume has been more active since February, signaling more investor interest. The On-Balance-Volume (OBV) line shows strength from early March as buyers of GPC have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of GPC, below, we can see a longer-term upside breakout over $140. Prices are trading above the rising 40-week moving average line. The weekly OBV line declined as prices moved sideways from the middle of 2021 but now the OBV looks like it is starting to improve again. The MACD oscillator is in a rising pattern above the zero line -- this is bullish.
In this daily Point and Figure chart of GPC, below, we can see an upside price target in the $173 area.
In this weekly Point and Figure chart of GPC, below, we can see a price objective of $185.
Bottom line strategy: Traders could go long GPC on a one- or two-day shallow retreat. Risk below $138. The $173 area is our first price target.
