Universal Display Corp. (OLED) has more than doubled since early January. Very, very impressive but some erosion in the indicators are telling me to raise sell stops. Let's see how the charts are shaping up today.
In this daily bar chart of OLED, below, we can see how prices corrected lower from September to early January and then accelerated to the upside the next six months.
Prices are close to new highs with OLED above the rising 50-day moving average line and the bullish 200-day line. The volume pattern is not bullish, but the On-Balance-Volume (OBV) line shows an uptrend to early May. But it has yet to confirm the new price highs this month. The Moving Average Convergence Divergence (MACD) oscillator moved from a sell signal in May to a buy signal in June, however, as this indicator is narrowing now towards a potential take-profits sell signal.
In this weekly bar chart of OLED, below, we can see the late 2017 peak followed by the decline to around $80 and the double-bottom pattern. The rally this year is falling short of the 2017 high and the weekly OBV line is not confirming the rally this year. The MACD oscillator is neutral at best and could turn up or down from here.
In this Point and Figure chart of OLED, below, we can see a small downside price target of around $268 projected.
Bottom line strategy: OLED looks extended on the upside and the OBV lines are not confirming the price strength. Protect long positions - I would suggest a stop at $165 to traders and below $150 for investors.
