GoDaddy Has Some Giddy Up Before Its S&P 500 Induction
The shares have doubled from their base around $70 in August and September. Let's what could be next.
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Standard & Poor's has announced several upcoming changes to S&P 500 Index. CrowdStrike CRWD, KKR KKR and GoDaddy GDDY will be added to the 500, replacing Robert Half RHI, Comerica CMA and Illumina ILMN.
GoDaddy helps people create their own websites and in launching small businesses. Let's check out the charts and indicators of GDDY.
In this daily bar chart of GDDY, below, I can see that the shares have doubled in price from their base around $70 in August and September. GDDY trades above the rising 50-day moving average line. The slope of the 200-day moving average line has a positive slope.
The daily On-Balance-Volume (OBV) line shows strength since September but also a flattening of the advance in recent months. The Moving Average Convergence Divergence (MACD) oscillator has turned lower but fresh gains in the share price could reverse that signal.
In the weekly Japanese candlestick chart of GDDY, below, I can see a long base pattern before GDDY made an upside breakout and rally. Prices have surged above the rising 40-week moving average line and are looking extended above this longer-term indicator.
The weekly OBV line shows a longer-term rise but a corrective trend since January. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of GDDY, below, used a five-box reversal filter. Here I can see a potential upside price target in the $252 area.
In this second Point and Figure chart of GDDY, below, I used weekly price data with a five-day reversal filter. Here the software shows us the same $252 price target.
Bottom-line strategy: GDDY shares are extended on the upside (overbought) but that does not mean it will correct lower. The shares could trade higher but the risk of a downside correction will likely rise. Traders who are long GDDY could hold but they need to raise their stop protection.
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