Tradeweb Markets Inc. (TW) builds and operates electronic over-the-counter (OTC) marketplaces. Let's check out its charts after it reported in-line first-quarter results late last week.
In this daily bar chart of TW, below, I can see that prices made a low in October. The daily On-Balance-Volume (OBV) line also made a low in October and then turned higher, telling me that buyers of TW were acting more aggressive than sellers. TW trades now between the 50-day and the 200-day moving averages. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line.
In this weekly Japanese candlestick chart of TW, below, I can see positive clues. Prices trade above the 40-week moving average line. I can see a recent lower shadow near the 40-week average line, telling me that traders are rejecting the lows and may be buying the dips. The OBV line shows strength from an October low. The MACD oscillator is above the zero line in this time frame but has crossed to a take profit sell signal.
In this daily Point and Figure chart of TW, below, I can see a potential downside price target in the $65 area. A trade at $74.46 should generate an upside price target.
In this weekly Point and Figure chart of TW, below, I can see a downside price target in the $62 area.
Bottom line strategy: TW has dipped down toward the 200-day moving average line in March and April and this looks like a buying opportunity. Traders buying the dip should risk a close below the 200-day line. Other traders could buy strength above $75.
