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.