What's Next for Genuine Parts?
Buyers have been more aggressive than sellers.
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Genuine Parts Co GPC is involved with the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. The stock price gapped higher last Thursday after their earnings beat and has digested those gains in recent days.
Let's delve into the charts to see what could come next.
In this daily bar chart of GPC, below, I can see that prices gapped last week on very heavy trading volume. GPC surged above the 50-day and the 200-day moving average lines.
The On-Balance-Volume (OBV) line has "chopped" higher from December telling me that buyers of GPC have been more aggressive than sellers.
The Moving Average Convergence Divergence (MACD) oscillator recently dipped below the zero line for an outright sell signal but last week's surge to the upside quickly turned this indicator higher.
In this weekly Japanese candlestick chart of GPC, below, I see a constructive picture. Prices are trading above the bottoming 40-week moving average line. The weekly OBV line is showing a slow improvement since October. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of GPC, below, I can see an upside price target in the $197 area.
In this weekly Point and Figure chart of GPC, below, I can see an upside price target in the $217 area.
Bottom line strategy: GPC may continue to trade sideways in the $165-$160 area for a few more days before resuming their advance. Traders could use this period of sideways movement to go long GPC. Risk to $153. The $197 area is my upside price target for now.
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