4 Safe-Harbor Stocks With Good-Looking Charts to Match
Editors' pick: Originally published June 30.
Shouldn't safe-harbor stocks have good-looking charts? I think so.
With the kind of volatility the markets have seen in recent years, it would pay to have all the investment approaches available to you lined up in your favor: fundamentals, quantitative approaches and, oh yes, technical analysis. Looking over Drexel Hamilton's list of 17-stocks, I found just four that I found attractive from the long side.
Let's take a closer look.
AT&T
In this daily chart of AT&T (T) - Get Report , we can see a base pattern in August through January when much of the rest of the equity market was weak. Prices began a nice advance in February and have not looked back. There is an April-May consolidation, and then prices started a new advance. Prices are above the rising 50-day and 200-day moving averages. The on-balance-volume, or OBV, line has been rising for much of the past 12 months. The moving average convergence/divergence oscillator is in a bullish configuration.
Cogent Communications
In this daily chart of Cogent Communications (CCOI) - Get Report , we see an uptrend since September. Prices are below the 50-day moving average line, but the slope of that line is still pointed up. CCOI is above the rising 200-day average line. The OBV line has been rising since September and tells us that buyers of CCOI have been more aggressive than sellers with volume heavier on days when CCOI closes higher. The MACD oscillator is back to the zero line and a sell signal. CCOI might decline further in the short-run to retest the top of support around $36.
Enviva Partners
In this daily chart of Enviva Partners (EVA) - Get Report , we see an uptrend from the September low. Prices are below the 50-day average line but above the 200-day average. The OBV line turns very strong from the beginning of the year and suggests strong accumulation of EVA. The MACD oscillator is indicating a sell. Support around $18 could be tested but is likely to hold.
Maxim Integrated Products
Our last positive-looking chart is of Maxim Integrated Products (MXIM) - Get Report .
Prices are below the 50-day and 200-day averages, and the OBV line has weakened this month, but it is up from January/February. The MACD oscillator is below the zero line for a sell signal. But overall it looks like MXIM is having a "normal" correction and could work higher in the weeks ahead.