Ode to Joy (Global)

Joy Global’s stock price fell from a high over $64 in the 3rd quarter of 2014 to a low under $9 in January this year. If anybody needs a pick me up like this flash mob version of Ode to Joy it is shareholders. But it looks the stock is on track to pull out of this downturn and continue higher. The chart below tells the story.

After a long bottoming process from September 2015 until mid April, the stock broke higher, making its first higher high. Smiles turned to frowns though as the break out failed and the stock moved back lower. The consolidation over the course of May established a higher low though. And then the break out to start June took the stock price to another higher high. An uptrend is emerging.

joy

The pull back since that higher high, in a bull flag, sets up for yet another leg higher. A break to the upside gives a target to 27.50 from the current low point of the flag. Momentum indicators are holding strong in the bullish zone as it digests the latest move up. The RSI is over 60 and running sideways while the MACD is rolling flat. Even the Bollinger BandsĀ® have opened higher to allow a move up. Look for a break of the flag higher, maybe over 22.75 to confirm the next leg up and use the low of the flag as a stop.

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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.

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