Newell Brands Inc. (NWL) is looking stronger with positive charts and a quantitative upgrade to Hold by TheStreet's Quant Ratings service. Let's review the charts of this name that reported earnings last Friday.
In the daily bar chart of NWL, below, we can see a classic saucer bottom formation from February through August. The trading volume even shows the same rounding pattern with volume heavier on the left side and shrinking in the middle before rising again on the right side.
The slope of the 50-day moving average turned up in early August and by early October it crossed above the bottoming 200-day line for what is often referred to as a golden cross signal. This moving average crossover and be a success tool in a long-trending market.
The On-Balance-Volume (OBV) line started to improve from late May at the bottom of the saucer. The Moving Average Convergence Divergence (MACD) oscillator gave a buy signal in early August when it crossed above the zero line.
In the weekly bar chart of NWL, below, we can stand back a few feet and see the turnaround. Prices are now above the bottoming 40-week moving average line.
The weekly OBV line has been rising since July and tells us that buyers of NWL have changed from aggressive sellers to aggressive buyers. The MACD oscillator just turned bullish on this longer time frame.
In this Point and Figure chart of NWL, below, we can see an upside price target of $33.
Bottom-line strategy: Try to go long NWL near $20 and risk below $18. The mid-$30's is our price target.
