ChargePoint Holdings Keeps Building a Base, So Be Patient

ChargePoint Holdings (CHPT) has been making a bottom pattern on its charts. Let's check and see if this is the right time to join the buyers of the provider of electric vehicle charging networks.  

In this daily bar chart of CHPT, below, we can see that the downtrend shifted to a sideways trend back in February. Buyers of CHPT have been coming in to buy in the $12-$8 area. In August and September the buyers came in around $14, showing us they are being more aggressive. Trading volume has increased since May. The On-Balance-Volume (OBV) line made a low in February and has improved, telling us that buyers of CHPT are acting more aggressively. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line. 

In this weekly Japanese candlestick chart of CHPT, below, we can see how CHPT declined from early 2021. The base pattern noted above includes a number of lower shadows in this chart, telling us when traders rejected the lows,like in January/February and May and July. Prices are trading above the bottoming 40-week moving average line. The weekly OBV line shows its own base pattern that looks powerful. The MACD oscillator is close to crossing above the zero line for an outright buy signal. 

In this daily Point and Figure chart of CHPT, below, we can see an upside price target in the $29 area. 

In this second Point and Figure chart of CHPT, below, we used weekly price data. Here the software projects the $35 area as a potential price target. 

Bottom line strategy: CHPT could continue to trade sideways a while longer, building out its base pattern further. Traders should be patient buyers toward the $14 level. Risk to $11. A move above $20 will be the breakout level on the upside. 

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