Hasbro is Transforming into a Winner
- Posted by Greg Harmon
- on May 31st, 2016
Hasbro ($HAS), makes all kinds of toys, including the Transformers pictured above. They have also been involved in merchandising for some of the biggest blockbuster comic book characters. So it is no wonder that the stock has been moving higher all through 2016. The chart below shows the 3 steps higher off of a bottom January 4th, that has taken the stock to new all-time highs.
Since that high the stock has been consolidating in a narrow $5 range, around the 20 day SMA. During the consolidation the Bollinger Bands® have squeezed tight. The MACD pulled back and the RSI retrenches at the mid line. Last week the momentum changed. The RSI moved back higher and the MACD crossed the signal line moving higher. This type of divergence momentum during consolidation often leads price higher.
Another indicator of a move coming is the opening of the Bollinger Bands after a squeeze. This is starting to happen as price pushes on the upper Band. With the price at prior resistance this may be ready to break for a 4th step higher. If the last 3 are any indication of the future then look for a move to 95 or higher.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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