Chart of the Week: Vistra
Hey good morning everybody. Happy Wednesday. It’s time for our chart of the week, and this week we’re gonna be focused on energy name Vistra Energy; symbol VST. Let’s take a look at this chart. It’s been pretty strong the last couple of months.
So as we can see here, after the low was made in April, the stock has been in a beautiful uptrend of higher highs and higher lows. And that is our textbook definition of an uptrend.
You can see the uptrend channel has been drawn in right here, again making higher highs, higher lows. And we are now testing the low end of that channel here, which was above the 20 day moving average – which is this dotted line here. We crossed above that way back in April on this gap up, and we held that level for about a month and a half – almost six weeks. So that’s been a really good strong trend that the stock has been in.
Notice the strength in the RSI here – the relative strength has been really good at the upper end of the range – above 60. That’s a really powerful trend.
We can also see that strong trend shows up in the Chaikin money flow down here at the bottom. It’s showing accumulation as well.
But what I want to direct your attention to is this on-balance volume. This is an indicator that was founded by Joe Granville back in the 1970s. This indicator also again shows heavy skew to buying by big institutions. And that is something that’s notable here; we have to pay attention to.
We do see even the data here on the volume – we see some good volume buying in the early part of May. We also saw some good buying here in the early part of April when the stock was making a bottom back then.
I think Vistra’s got a chance to get back to all-time highs. This one here has a gap to fill at about, let’s call it about $195 or so – $194. We’re at $167 right now, so that would be a nice, almost a 20% move – 15 – 17% move – up from current levels.
So take a look at Vistra. I think this stock has got some more legs to it. And I think even beyond that, if we can get above that level here and fill that gap and make a run towards new all-time highs, we could make a run to $220 or so.
That’s Vistra Energy; VST is the symbol. Thanks so much for watching everyone, and I’ll see you next time.
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