Wix.com Ltd. (WIX) is flirting with its late September/early October zenith. Can it break out to a new high or is there a risk of a double top? Let's check out the charts and indicators for some guidance.
In this daily bar chart of WIX, below, we can see that WIX is back to it prior high in the $120 area. Prices are above the rising 50-day moving average line and the bullish 200-day average line. The 50-day line is close to crossing above the slower-to-react 200-day line for a belated golden cross buy signal. The trading volume since the end of December looks relatively light but the daily On-Balance-Volume (OBV) line shows a strong rise and new highs. The OBV line can lead price action and this breakout to a new high for the OBV line could well be foreshadowing new price highs. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed the zero line in early January for an outright go long buy signal.
In this weekly bar chart of WIX, below, we see a mostly bullish picture. Prices are above the rising 40-week moving average line and we are very close to a new weekly high close. The weekly OBV line shows a June high that is not (yet) overcome. The weekly MACD oscillator just crossed to the upside for a fresh buy signal.
In this Point and Figure chart of WIX, below, we can see that a trade at $122.47 will be a new high on this chart and that could open the way to a longer-term price target $198.
Bottom line strategy: charts can always "go bump in the night" but right now it looks like WIX can break out to new highs. Approach WIX from the long side on a shallow dip and risk below $110.
