PotlatchDeltic (PCH) is scheduled to report its fourth-quarter results after the close of trading here on Monday. Let's check out the charts and indicators of the REIT that owns 1.8 million acres of timberland across the U.S. and see if the wood is straight and ready to build from here.
In this daily bar chart of PCH, below, I see a stock that has made a bottom formation since June. Prices made a low back in September and a higher low in December/January. Prices have recently made two closes above the declining 200-day moving average line. The slope of the 50-day line has turned positive. The daily On-Balance-Volume (OBV) line made a low with price in September and tells me that traders have shifted to a stance of being more aggressive buyers. The Moving Average Convergence Divergence (MACD) oscillator is crossing the zero line now for a fresh outright buy signal.
In this weekly Japanese candlestick chart of PCH, below, I can see a bottom reversal pattern in September. I also see that prices have closed above the 40-week moving average line. The weekly OBV line made a low in September and another equal low in December. The MACD oscillator crossed to the upside in October for a cover shorts buy signal and is getting closer to the zero line from below.
In this daily Point and Figure chart of PCH, below, I can see an upside price target projected to the $59 area.
In this second Point and Figure chart of PCH, below, I used weekly price data. Here, too, the software shows us a potential target in the $59 area.
Bottom line strategy: I have no knowledge of what PCH will tell shareholders and analysts this evening but the charts are positive and traders could probe the long side of PCH at current levels and on any dip to around $48. Risk to $44. The $59 area is our first price target.
