Xilinx, Inc. (XLNX) is up big today. Really big. The share price has been rallying from early July and mostly ignored the decline seen in the broad market late last year. I am always impressed with independent strength and you should too. Enough of an introduction, let's check out the charts and indicators.
(For more on XLNX, see Timothy Collins' article, here.)
In this daily bar chart of XLNX, below, we can see that prices are above the rising 50-day moving average line and the rising 200-day line. Back in late August the 50-day line turned above the slower-to-react 200-day line for what is commonly called a (bullish) golden cross.
The daily On-Balance-Volume (OBV) line shows a rise from late April and it is likely to make a new high for the move up today. This is what technical analysts call confirmation - rising volume helps to confirm the durability of an uptrend.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode as it is rising and above the zero line.
In this weekly bar chart of XLNX, below, we can see that prices are above the rising 40-week moving average line.
The weekly OBV line has made a new high to confirm the aggressive buying and the uptrend.
The weekly MACD oscillator is bullish too.
In this weekly percentage change Point and Figure chart of XLNX, below, we can see an upside price target of $160. Not bad.
Bottom line strategy: Traders should look to buy any shallow dip in the price of XLNX. Get long and risk a close below $100 or even below $95 if you can afford it. $160 is our longer-term price target.