In our last review of YETI Holdings (YETI) back on May 24, we recommended that "Traders could go long YETI at current levels risking to $81. The $135 area is our price target now." Prices rallied into early August and have made a correction recently. Can go YETI higher still?
Let's check the charts.
In this daily bar chart of YETI, below, we can see that prices rallied into early August and then stalled a few weeks before correcting lower into early October. The rising 200-day moving average line was tested and prices have begun to turn higher again. The On-Balance-Volume (OBV) line has been steady since early July and shows little in the way of aggressive selling.
The Moving Average Convergence Divergence (MACD) oscillator crossed to a cover shorts buy signal in early October and is now close to crossing the zero line for a buy signal.
In this weekly Japanese candlestick chart of YETI, below, we can see that prices are up five-fold from the pandemic low of 2020. Prices are slowly moving away from their test of the rising 40-week moving average line.
The weekly OBV line shows a dip in September but its longer-term pattern is bullish. The MACD oscillator is pointed down but has begun to narrow.
In this daily Point and Figure chart of YETI, below, we can see an upside price target in the $104 area.
Bottom line strategy: Traders who are long YETI could raise stops to $84 from $81. $104 and then $135 are our price targets.
