In this updated daily bar chart of TSCO, below, we can see that prices have soared this year from January, but we can see an even bigger rally from the March nadir. TSCO is trading above the rising 50-day moving average line as well as above the rising 200-day moving average line. We can see a bullish golden cross of the 50-day and 200-day averages in late May. The On-Balance-Volume (OBV) line has been strong since March but has "leveled off" in July. This could be considered a bearish divergence, but may not be enough to start a pullback or correction. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line, but the two moving averages are on top of each other.
In this weekly bar chart of TSCO, below, we can see a bullish set up. Prices are in an uptrend above the 2019 highs. Prices are trading above the rising 40-week moving average line. The weekly OBV line is rising and the MACD oscillator is bullish.
In this Point and Figure chart of TSCO, below, we used daily price data. A price target of $161 is indicated.
In this second Point and Figure chart of TSCO, below, we used weekly price data. Here we can see that the software is projecting a potential target of $242.
Bottom line strategy: We see a small bearish divergence between the OBV line and the price action this month on TSCO. Is that enough to precipitate a pullback? I don't know. I would want to be a buyer of TSCO, but the question is where and what to risk. If you are willing to risk a close below $130 I could say go long at current levels.
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