Is Republic Services Poised for an Upside Breakout?
Here are the price targets.
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Recycling and waste disposal service company Republic Services RSG has climbed higher the past year as many stocks have turned lower. The stock price has moved in a sideways consolidation pattern the past six months and the question is whether RSG is poised for an upside breakout. Let's check the charts and indicators for an answer.
In this daily bar chart of RSG, below, I can see that RSG has found buying interest in the $140 area in June and October. Some profit taking has been seen in the $155 area. Is the path of least resistance higher? The trading volume looks like it has improved since July.
The On-Balance-Volume (OBV) line has been choppy since May. The Moving Average Convergence Divergence (MACD) oscillator has moved back above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of RSG, below, I see a bullish picture. RSG recently tested and bounced off of the rising 40-week moving average line. In hindsight this test of the 40-week line was a buying opportunity.
The weekly OBV line shows strength since March. The MACD oscillator is above the zero line and in the process of crossing to the upside for a fresh outright buy signal.
In this daily Point and Figure chart of RSG, below, I can see an upside price target in the $179 area and a trade at $158 should refresh the uptrend.
In this weekly Point and Figure chart of RSG, below, I can see a price target in the $185 area.
Bottom line strategy: Traders could go long RSG on strength above $158. Risk to $149. The $179-$185 area is my price target.
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