Chart of the Day: This 'Purring Cat' Is Making the Most of a Bullish Move
Recent trends in price and volume show very constructive action.
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With the quietness of a purring cat Elastic N.V. ESTC has moved into the bullish camp without much fanfare. The stock has been making a series of higher highs, higher lows on the chart — our textbook definition of an uptrend.
Candles are blue as well, which indicate bullish on the chart. But the indicators below have us excited. They are the stochastics (momentum) and the ADX, which has turned higher lately and is showing strength in the trend. This indicator does not tell us direction but since we can infer it is higher then the strength of this uptrend is powerful.
MACD (moving average convergence/divergence) is solidly on a buy signal but look at Chaikin money flow at the bottom, which reflects heavy buying from big institutions. That is important support and sponsorship.
There are not many catalysts to move Elastic until earnings in August, which is fine by us. We don't need an excuse to rationalize a move up or down, just the knowledge that big money is buying shares.
We have a price target of $120, which can be very achievable in the next wave.
We like Elastic in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long ESTC.
