Footwear Maker On Holding Sprints Higher and I'm Raising My Price Targets
The stock of the producer of running and outdoor shoes also gains an analyst's buy recommendation.
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On Holding AG ONON was rated a new fundamental overweight (buy) by Barclays here on Monday with a price target of $38. On Holding sells footwear and apparel for high-performance running, outdoor and all-day activities. I reviewed the charts of ONON on March 12 when it was skidding lower on the charts, so let's see whether anything has changed with the stock.
In this updated daily bar chart of ONON, below, I can see how quickly the price of ONON recovered in the second half of March. Prices made a quick test/break of the 50-day and 200-day moving average lines and resumed their advance. Trading volume was very heavy, suggesting both active selling and active buying. The On-Balance-Volume (OBV) line declined and then recovered. The Moving Average Convergence Divergence (MACD) oscillator corrected and looks ready now to resume its rise above the zero line.
In this weekly Japanese candlestick chart of ONON, below, I can see patterns. The first pattern is a bottom-like saucer in 2022 followed by a bullish-looking consolidation pattern in 2023. The trading volume is more active in the past 12 months and prices trade above the rising 40-week moving average line. The weekly OBV line is very strong and has moved up to a new high, which may be foreshadowing new price highs. The MACD oscillator is now bullish.
In this daily Point and Figure chart of ONON, below, I can see an upside price target in the $43 area.
In this second Point and Figure chart of ONON, below, I used weekly price data. Here the software comes up with a price target in the $52 area.
Bottom line strategy: Risking to $31, traders could probe the long side of ONON at current levels. My price targets are now $43 and then $52.
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