Shaw Communications (SJR) - Get Report was upgraded today by TheStreet's quantitative service. The chart of SJR had a sharp down move and fast return back up this month, so a quantitative upgrade got my attention. The charts of SJR are interesting and bullish, so let's take a look together.
In this daily bar chart of SJR, below, we can see an uptrend from November with rallies and corrections. The pullbacks look "normal," with the correction in March testing the rising 200-day moving average line. The decline and rebound this month are sharper and quicker but did not do any real damage to the longer-term uptrend.
Prices closed below the 50-day moving average line earlier this month and closed below the rising 200-day line just for three days. The On-Balance-Volume (OBV) line moves from the lower left to the upper right (an uptrend) and only makes a shallow dip this month when SJR declined.
In this weekly bar chart of SJR, below, we can see prices are above the rising 40-week moving average line. Prices did decline below the line but did not close below it. The weekly OBV line has maintained a positive direction since early 2016 and suggests prices are going higher. The MACD oscillator has been above the zero line since June 2016. The oscillator is poised to cross to the upside for a fresh go-long signal.
In this Point and Figure chart of SJR, below, we can see a trade at $25 will be a fresh upside breakout and open the way to gains to $39.50.
Bottom line: The quantitative upgrade and the quick recovery from the losses earlier this month impress me. Trade SJR from the long side. Buy strength above $23.50, risking below $22.
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This column originally appeared at 2:48 p.m. ET today on Real Money, our premium site for active traders. Click here to get great columns like this from Bruce Kamich, Jim Cramer and other writers even earlier in the trading day.
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