A Technical Guide for Guidewire Software
Here's why sideways moves on the chart could help traders.
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Guidewire Software GWRE helps companies automate their back-office processes and provides financial products and services to companies. The stock price has been climbing higher and the question is whether there are further gains ahead.
Let's check out the charts and indicators.
In this daily bar chart of GWRE, below, I can see that prices trade above the rising 50-day moving average line and above the rising 200-day moving average line. A correction in early June took prices close to the rising 200-day moving average line and with hindsight it looks like a buying opportunity. The On-Balance-Volume (OBV) line has managed to climb higher the past 12 months to confirm the price gains we have seen. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero-line and turning higher for a new outright-buy signal.
In this weekly Japanese candlestick chart of GWRE, below, I can see that prices made a "V" bottom in 2022. Prices have rallied and have stayed above the rising 40-week moving average line. The weekly volume histogram shows steady interest. The OBV line has mirrored the price action the past two years. The moving average convergence divergence oscillator is in a bullish alignment and rising above the zero-line.
In this daily Point and Figure chart of GWRE, below, I can see a very steady climb higher and a potential price target in the $199 area. Let's round it up to $200.
In this weekly Point and Figure chart of GWRE, below, I can see that prices have reached and exceeded a price target in the $134 area.
Bottom line strategy: GWRE may trade sideways for a few days and traders could use that sideways trend to do some buying. Risk to $135. The round number of $200 is my price target for now.
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