Zebra Technologies ( ZBRA) was upgraded to "overweight" by J.P. Morgan with a $500 price target. The company is involved with mobile computing specializing in technology used to sense, analyze, and act in real time. It manufactures and sells marking, tracking, and computer printing technologies.
In our Nov. 23 review of ZBRA we wrote that "Traders who may be long ZBRA should hold those positions but raise stops to $560. The Point and Figure charts are bullish but the recent spinning tops on the candlestick chart tell us to be on the alert for a possible shift in trend." 
In the daily bar chart of ZBRA, below, we can see that those spinning tops were giving the right clues. The sell stop at $560 should have been elected quickly in January as the stock turned lower. ZBRA is trading below the declining 50-day moving average line after a test of the underside of the line. Another test of the line is possible.
The On-Balance-Volume (OBV) declined into early March as sellers of ZBRA were more aggressive and heavier trading volume was seen on days when the stock closed lower than when the stock rallied. The Moving Average Convergence Divergence (MACD) oscillator made a low in late February and a cover shorts buy signal in early March. The oscillator has improved to the underside of the zero line but has started to narrow towards a bearish crossover.
In the weekly Japanese candlestick chart of ZBRA, below, we still see a bearish picture. The candles in March do not show us a clear reversal pattern. Prices continue to trade below the declining 40-week moving average line.
The weekly OBV line remains pointed lower. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero line but has begun to narrow in recent weeks. A cover shorts buy signal could be a ways off.
In this daily Point and Figure chart of ZBRA, below, we can see a downside price target in the $365 area.
In this weekly Point and Figure chart of ZBRA, below, we can see a potential upside price target in the $571 area.
Bottom-line strategy: In the short-run it looks like ZBRA can trade higher but without further sideways price action (a.k.a. base building) I cannot be too excited about approaching the long side at this point in time. Our opinion could change in the weeks ahead depending on the price action.
