Universal Display (OLED) - Get Report  , which produces organic light-emitting diodes used in solid-state lighting applications and flat panel displays, has been in an uptrend for the last year and recently completed a retest of its rising trend line and 200-day moving average. Now it looks like it is ready to resume the primary trend and continue heading higher.

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The weekly chart shows that the stock made a quadruple bottom about a year ago and then began making a series of higher highs and higher lows. The first low occurred at what is the 62% Fibonacci retracement level of the 2014 low and this year's high, and the most recent low in August developed above the 38% retracement of that same range.

Additionally, a morningstar pattern has formed at the intersection of this retracement level, the rising 40-week (200-day) moving average and the uptrend line drawn off the lows of the last 52 weeks. The morningstar pattern is a three-period reversal formation which consists of a dark down day, followed by a narrow opening and closing range "doji" candle and completed by a white or positive candle. It represents a transition in trader sentiment from bearishness to bullishness.

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On the daily chart, the three week morningstar pattern can be seen as a small channel pattern below the $60 level and above the 200-day average. A 3.6% move on Friday ran up to test the $62.75 level, which has acted as both support and resistance over the last five months. Moving average convergence/divergence made a bullish crossover, and the relative strength index is moving above its center line. These readings reflect positive price momentum, and the green-over-red crossover on the vortex indicator suggests the start of a new uptrend. Volume spiked on Friday along with the jump in price, and the accumulation/distribution line and Chaikin money flow have crossed above their 21-period signal averages, confirming the positive buying pressure.

The stock is a buy after penetration of the $62.75 resistance level using a close trailing percentage stop.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.