Global Payments Inc. (GPN) received a "new buy" recommendation from Baptista Research here on Monday with $126.10 price target. Let's check if the charts and indicators are on the same page as this fundamental recommendation for the provider of payment technology and software.
In this daily bar chart of GPN, below, I can see two trends. There is a longer-term downward trend the past year and the start of a sideways trend from December as prices try to bottom. GPN trades below the declining 50-day moving average line and below the declining 200-day moving average line. Trading volume has been active the past year as traders have been voting with their feet. The On-Balance-Volume (OBV) line has declined but shows a low in December and a slightly higher low in March. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside from below the zero line for a cover shorts buy signal.
In this weekly Japanese candlestick chart of GPN, below, I can see a longer-term downtrend from the $220 area in early 2021. Prices are trading below the declining 40-week moving average line. The weekly volume histogram shows good volume the past year, which suggests increased investor interest. The weekly OBV line has moved sideways the past year while prices have declined. The MACD oscillator made a low in December 2021 but still remains below the zero line.
In this daily Point and Figure chart of GPN, below, I can see an upside price target in the $114 area.
In this weekly Point and Figure chart of GPN, below, I can see a potential downside price target in the $69 area.
Bottom line strategy: It looks like GPN has begun a bottoming process but more work needs to be done. Let things play out and let's circle back to GPN in a few weeks.
