by In this DE daily bar chart below, we can see that prices bottomed out in July and rose sharply. Prices were in an uptrend above the rising 50-day moving average and above the rising 200-day moving average before today’s gains. Trading volume increased from mid-October, likely ahead of earnings.
The daily On-Balance-Volume (OBV) line was strong and reached a new high for the year before prices hit a new high. The OBV line can sometimes be a leading indicator.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line and should move higher towards a new outright buy signal.
In this weekly Japanese candlestick chart from DE, below, we see a bullish picture. Prices are poised to test or improve on early 2022 highs. DE is trading above the rising 40-week moving average line.
The weekly OBV line is rising and about to hit a new high, which tells us buyers of DE have been more aggressive. The MACD oscillator is bullish.
In this daily Point and Figure chart from DE, below, we can see the price action through Tuesday’s close. The chart shows a price target in the $466 area.
In this weekly Point and Figure chart from DE, below, we see a potential longer-term price target in the $559 area.
Bottom line strategy: Traders who are long DE may want to consider taking partial profits as they approach the daily Point and Figure target of $466. This is a tactical move and does not mean that the uptrend in DE is over. Increase your sell stops on the balance of your position.
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