Chart of the Week: MTCH
We are focused on a name I’ve been doing pretty well on recently in the chat room and service. It’s Match Group, MTCH is the symbol.
As you can see, the month of May has been a really nice time for this stock to build a base. What we like to see is when a stock breaks down, as it did back in January, it makes lower highs and lower lows, but then it stops going down. When it stops going down, we like to see a nice base build. As legendary technician Louis Amata said, “The longer the base, the higher the space.” What does that mean? The longer the base, the more space it has to go up.
We can see the stock has been starting to rip higher from the beginning of June. It has a green candle over here on the go-no-go indicator. Now we’re in the light blue.
And we’ve just penetrated the 200 day moving average. That means we get another close above there, the stock has room to go back to the January highs, let’s call it around $52. We’re at $44 right now. It would be a nice 20% gain from here.
Indicators are bullish for MTCH
All the other indicators, pretty overbought right now and reflecting that the stock has bullish for the past two and a half weeks. We had a crossover MACD back in the middle of May. The trader’s dynamic index, which reflects the difference between relative strength and bollinger bands, is also on a buy signal. And we are overbought on the stochastic momentum.
Could it pull back a little? Sure – maybe back down to $41-42 where it was a couple of days ago. But that pullback would be a great opportunity to add more shares. I’m long calls out into July and into September. It’s had some really good flow for the past few weeks. This has been stock that we’ve been buying since it was in the 30s and rolling up and continuing to take profits.
That’s Match Group (MTCH). It’s a great stock and I think we have more upside to go here.
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