We're Due for Another Look at Bill.com

The shares have doubled since May so let's see how the charts look now.

When we looked at Bill.com Holdings (BILL) , the automated payables and receivables platform, back on Feb. 10 we wrote that, "Traders looking to go long BILL should be patient and wait for a pullback/correction to unfold. Prices have made a good run to the upside and I would anticipate some degree of profit taking. Let's wait and see how things develop."

The shares corrected into March and made a retest in May giving traders a number of opportunities to get long. Prices have doubled since May so let's see how the charts look now.

In the updated daily bar chart of BILL, below, we can see the shares have been correcting to the downside from early September and giving back some of the gains of the prior four months. BILL is still above the rising 50-day moving average line and above the positively sloped 200-day moving average line.

The On-Balance-Volume (OBV) line has moved higher all year to confirm and support the price gains. No bearish divergences between price and the OBV line. The Moving Average Convergence Divergence (MACD) oscillator is still above the zero line but has been in a decline since mid-September. The good news is that the oscillator is narrowing.

 

In the weekly Japanese candlestick chart of BILL, below, we see some interesting clues. The middle of the large white candle in August should act as support -- the $240 area.

 

The slope of the 40-week moving average line is positive. The weekly MACD oscillator is bullish.

 

 

In this daily Point and Figure chart of BILL, below, we can see a potential downside price target in the $228 area.

 

 

 

 

In this weekly Point and Figure chart of BILL, below, we used a five-box reversal filter. Here the chart is projecting a $412 price target.

 

 

Bottom-line strategy: Traders who are long BILL -- great. Everyone else could use this current price weakness to go long BILL. Risk to $225. On the upside our longer-term price target is $412.

 

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