We looked at NVCR on October 5 and wrote that, "NVCR rebased from March to July before launching its current advance. The $150 area is a big number and an upside price target from a bar chart. The $344 area is a longer-term Point and Figure target. Aggressive traders could go long NVCR at current levels, risking a close below $100 for now. The $150 area is our first target."
Let's check out the charts and indicators again to see what has changed in the past month.
In the daily Japanese candlestick chart of NVCR, below, we can see that the shares corrected lower after our October 5 buy recommendation but with our stop recommendation a close below $100 we would still be long. Tuesday's candle pattern looks like a hammer bottom pattern and a successful test of the rising 50-day moving average line. A bullish candle pattern Wednesday would confirm the hammer and define a bottom reversal.
The On-Balance-Volume (OBV) line shows only a shallow decline from the middle of October into early November. The Moving Average Convergence Divergence (MACD) oscillator is pointed down towards the zero line but it has narrowed in recent days and could actually cross to the upside in the days ahead.