Heico Corp. (HEI) manufactures jet engine and aircraft component replacement parts and other systems. It stock has been flying high the past three years and the technical indicators look like they can support more gains in the weeks ahead.
Let's check out the charts.
In the daily bar chart of HEI, below, we can see that prices have nearly doubled since late December. HEI is above the rising 50-day moving average line and the rising 200-day line.
Trading volume has been heavy since late May when prices gapped higher and the uptrend accelerated. The On-Balance-Volume (OBV) has been rising since late December to confirm and support the rally.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for much of the past twelve months but crossed to the downside in June for a take profits sell signal.
In the weekly bar chart of HEI, below, we can see that prices have more than tripled the past three years. Prices are above the rising 40-week moving average line.
The weekly OBV line has made new highs the past two months to confirm the gains. The weekly MACD oscillator is bullish too.
In this Point and Figure chart of HEI, below, we can see an upside price target around $191.
Bottom-line strategy: Compared to the rising 200-day line HEI looks extended, but that does not mean it cannot soar higher. With a $191 Point and Figure target I would trade HEI from the long side risking a close below $125.