We reviewed the charts of Match Group (MTCH) on July 15 but with word Friday about its inclusion into the S&P 500 it warrants another look. In July we recommended that "We do not have a lot of price history for MTCH but the sense I get from these four charts is to be very cautious in the short-term with weekly candle patterns that could be top reversals." Let's see how things look now.
In this updated daily bar chart of MTCH, below, we can see that prices declined in August but managed to hold the $130 area again making it good support. Prices have rallied back and are retesting the underside of the 200-day moving average line and very close to a retest of the 50-day moving average line. The trading volume has been increasing since early July and I view that as a positive development as more traders are getting attracted to this name.
The On-Balance-Volume (OBV) line weakened in August as traders were more aggressive sellers but it looks like the OBV line is starting to improve again.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside from below the zero line for a cover shorts buy signal.
In this weekly Japanese candlestick chart of MTCH, below, we can see four separate occasions where the $130 area provided key support. Prices are trading just below the 40-week moving average line.
The weekly OBV line shows a long sideways pattern from December. The MACD oscillator is narrowing just above the zero line.
In this daily Point and Figure chart of MTCH, below, we can see a potential upside price target of $160. A start.
In this weekly close only Point and Figure chart of MTCH, below, we can see a downside price target in the $102 area. A trade at $155.50 should help improve the chart.
Bottom line strategy: Traders could go long MTCH on strength above $155. Risk to $140.
