Zumiez Inc. ( ZUMZ) is due to report its latest quarterly results here on Thursday. Let's visit a few charts of the specialty retailer to see what investors may be anticipating for the company.
In this daily bar chart of ZUMZ, below, the stock has traded sideways to higher so far this year but rallies keep failing in the $27-$28 area. ZUMZ has crisscrossed the 50-day and 200-day moving average lines several times since January, but now prices are above the rising 50-day and 200-day lines. The daily On-Balance-Volume (OBV) line is stable from December to early June, and from June it has strengthened, signaling more aggressive buying. The trend-following Moving Average Convergence Divergence (MACD) oscillator recently moved back above the zero line for an outright go long signal.
In this weekly bar chart of ZUMZ, below, we can see that the sideways trading activity goes back to early 2018. Prices are above the rising 40-week moving average line and the weekly OBV line shows improvement from May. The MACD oscillator on this long time frame is turning up to a fresh go long message.
In this first daily Point and Figure chart of ZUMZ, below, we can see that a trade at $26.99 will be an upside breakout. A $28.42 price target is indicated.
In this second Point and Figure chart of ZUMZ, below, we used weekly data. Here, an upside price objective of $35-$36 is projected.
Bottom line strategy: Traders could go long above $27 if they can afford to risk below $23.50. The $35 area is our eventual price target.
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