We Have a New Trading Strategy on Azek

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After we reviewed the charts of Azek Inc. (AZEK) on June 18 we wrote that,”The charts of AZEK are pointed a bit bit decrease. Additional value weak spot is probably not a shopping for alternative as we have to see how merchants react. Will the OBV line begin to flip upward? Let’s wait and watch a bit longer.”

We return to the charts of AZEK right now as a result of TheStreet’s Quant Rankings service simply began protection with a “maintain” advice. 

Let’s take a look at the charts once more.

Within the up to date day by day bar chart of AZEK, under, we will see that the shares have continued decrease into July however there’s some enchancment under the floor. Sure, costs are under the declining 50-day shifting common line and under the 200-day line.

The On-Stability-Quantity (OBV) line made a low in June however has not made a brand new low in July regardless that costs have declined additional — a small bullish divergence. The 12-day value momentum research made a low in June and the next low in July for an additional bullish divergence. 

 

 

Within the weekly Japanese candlestick chart of AZEK, under, we will see some delicate enchancment. The newest candle sample could possibly be a spinning prime telling us that patrons and sellers are in comparatively shut steadiness. The slope of the 40-week shifting common line is adverse.

 

The weekly OBV line is pointed down and the MACD oscillator is weak.  

 

 

 

On this day by day Level and Determine chart of AZEK, under, we will see that costs are reaching a draw back value goal. Costs may decline additional however technically oriented merchants is likely to be overlaying shorts.  

 

 

 

Backside-line technique: It appears like it’s time for a method shift on AZEK. Aggressive merchants may go lengthy on the primary up shut or up day on AZEK. Threat a detailed under $36.

 

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