Shares of Mattel ( MAT) were raised to a fundamental buy rating by Goldman Sachs (GS) with a $31 price target. The heavyweight Wall Street firm turned bullish on the impact of the toymaker's recent content releases. Let's check out the charts of Mattel to see what they have to say.
In this daily bar chart of MAT, below, we can see that prices have been making higher lows the past 12 months. The chart also shows that the last higher high was in early May. A new higher high is needed to refresh the uptrend. Prices are trading between the 50-day and the 200-day moving averages. The On-Balance-Volume (OBV) line has been neutral since the middle of February as buyers and sellers are roughly in balance. The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned upward for a cover shorts buy signal.
In this weekly Japanese candlestick chart of MAT, below, we can see that prices are still pointed up from their early 2020 low. The slope of the 40-week moving average line is still positive. The weekly OBV line is in an upward trend, telling us that buyers are more aggressive than sellers. The MACD oscillator is above the zero line and needs to turn higher for a new outright buy signal.
In this daily Point and Figure chart of MAT, below, we can see an upside price target in the $36 area. A trade at $27 will refresh the uptrend.
In this weekly Point and Figure chart of MAT, below, we can see the same $36 price target.
Bottom line strategy: If MAT can ignore the weakness in the broad market averages we could see prices grind higher in the weeks ahead. A trade at $27 is needed to motivate me to be a buyer.
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