We looked at Unity Software (U) on September 23 and wrote that "Traders could approach the long side of U around current levels risking down to $115. On the upside we could see a rally to the $161 area in the fourth quarter."
The video design and animation software maker reported their latest earnings figures late Tuesday for Q3 and they beat expectations and raised their guidance along with announcing a purchase. U has reached and exceeded our $161 price target today so let's check on the charts again.
In this updated daily bar chart of U, below, we can see that prices have been very strong since a dip in early October. Prices made a big range today and surged to a new high in the $189 area. The 50-day moving average has a positive slope.
The daily On-Balance-Volume (OBV) line is pointed up and the Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this daily Point and Figure chart of U, below, we can see that prices reached a $181 price objective.
In this weekly Point and Figure chart of U, below, we used a five box reversal filter. Here the chart shows a price target in the $206 area.
Bottom line strategy: U has reached and exceeded our $161 price target so I vote in favor of taking some money off the table. Raise stops on the remaining position to $141 from $115. The $206 is our next price objective.
