Swiss Sneaker Co. On Holding Takes Center Court on the Charts
After earning a quiet applause by fans of Wimbledon, ONON could lob toward higher prices.
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Swiss sneaker maker On Holding AG ONON has been getting a lot of publicity during the Wimbledon Championships, commonly called Wimbledon, on TV in recent days. Many of the players have the On Holding AG logo on their traditional white outfits.
Endorsements make the world go round.
Let's check out the charts of ONON to see if this media attention may translate into a higher stock price.
In my May 29 review of ONON, I wrote that "Traders who are long ONON should continue to hold. The $66 area is my new price target above $52."
In this daily bar chart of ONON, below, I can see that prices made a high in June and has pulled back to chart support in the $36 area. Prices have been trading around the 50-day moving average line in recent days. The slope of the 50-day and the 200-day average are both positive. The 200-day line was successfully tested in early May.
The On-Balance-Volume (OBV) line has corrected lower in recent weeks to mirror the price action. The trend-following Moving Average Convergence Divergence (MACD) oscillator is back down to the zero line but narrowing towards a potential bullish crossover.
In this weekly Japanese candlestick chart of ONON, below, I see a generally positive picture. Prices have made a bottom and an advance. ONON trades above the rising 40-week moving average line. The weekly trading volume has been more active the past twelve months. The weekly OBV line has moved higher the past two years and has corrected lower in June. The moving average convergence divergence oscillator is in a bullish alignment above the zero-line.
In this daily Point and Figure chart of ONON, below, I can see that prices have rallied and corrected back down to potential chart support in the upper to mid-$30s. The software is projecting a price target in the $72 area. A trade at $33 would probably turn this chart bearish.
In this weekly Point and Figure chart of ONON, below, I used a five box reversal filter. Here the software suggests a price target in the $71 area. Support starts at $37.
Bottom line strategy: There are many sponsors at Wimbledon. Will I be buying a Rolex watch anytime soon? Probably not. Will I be considering purchasing a new pair of sneakers from ONON - more likely.
Traders could continue to hold ONON longs. I would use a stop at $32 now. Price targets remain $52, $66 and $72.
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