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Hasbro Transforms Into A Winner

Published 05/31/2016, 01:30 PM
Updated 05/14/2017, 06:45 AM
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Hasbro (NASDAQ:HAS) makes all kinds of toys and has 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 so far this year. The chart below shows the 3 steps higher off of a bottom on January 4, which 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.

Hasbro

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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