UBS Group Gets Quantitative Upgrade

UBS Group (UBS) was upgraded Thursday by TheStreet.com's quantitative service so, naturally, I looked at the charts and indicators. The price of UBS has moved sideways for much of the past year, so an upgrade could be a reason to see a move to the topside. Let's check the chart and indicators to see how to proceed.

In this daily bar chart of UBS, below, we can see that prices have traded above and below the rising 50-day simple moving average line. The 200-day moving average is pointed slightly higher, and it was tested in early September. The daily On-Balance-Volume (OBV) line has been largely neutral the past year with two rallies that matched the price action. A move higher in the OBV line above the October high would be constructive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is flat on the zero line which tells you with math what your eyes saw -- a sideways market.

In this weekly bar chart of UBS, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line was in a general decline since 2015 but shows some improvement the past three months. The weekly MACD oscillator is above the zero line but could turn in either direction.

In this Point and Figure chart of UBS, below, we can see an uptrend and a $21 price target.

Bottom line -- risking below $16.50 traders could approach the long side of UBS. Add on a close above $17.50 look for gains to the $20 area.

Click here to subscribe to Quant Ratings, where you can read our full report on UBS or more than 4,000 other stocks that our service rates in real time every market day.

However, please note that our Quant Ratings service assesses stocks using a proprietary computer model that runs a variety of factors through quantitative and technical analysis. Ratings do not necessarily reflect the opinions of Jim Cramer or other columnists, who may use different criteria to grade stocks. 

This column originally appeared at 3:13 p.m. 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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