Corning Resumes Its Advance and We've Got a New Price Target
Here's our updated technical strategy for the shares as they resuming their upward trend.
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On May 31 I reviewed the charts of specialty glass and ceramics maker Corning GLW writing that, "In the short-run we may see GLW move sideways around $36. After a few weeks of sideways action we should see GLW resume its advance. Trade accordingly."
With the shares now trading around $39, let's check the charts and indicators again.
In the daily bar chart of GLW, below, I can see that the shares traded sideways in early June before resuming their upward trend. GLW trades above the rising 50-day moving average line and above the rising 200-day moving average line.
Trading volume has been more active the past six weeks. The daily On-Balance-Volume (OBV) has been strong and confirms the price action as buyers of GLW have been more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but "taking a pause."
In the weekly Japanese candlestick chart of GLW, below, I see a positive picture. Prices are in a longer-term advance and trade above the rising 40-week moving average line.
The weekly OBV line has been strong and supports the gains we have seen this past year. The MACD oscillator is in a bullish alignment above the zero line. The candles are not showing me any signs of a top reversal.
In this daily Point and Figure chart of GLW, below, I can see a potential upside price target in the $67 area. This is a higher price target than what we saw in our last review. The earlier target was $58.
In this weekly Point and Figure chart of GLW, below, I used a five-box reversal filter and can see a price target in the $67 area.
Bottom-line strategy: Traders who are long GLW should continue to hold. Risk to $35. Add to longs on a shallow dip. The $67 area is my new price target.
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