ServiceMaster Global Holdings (SERV) got praise from Jim Cramer on “Mad Money” last week, when he told a viewer, “I’ve always liked ServiceMaster.”
Let’s check out the charts of this provider of termite and pest control, cleaning and restoration services.
In this daily bar chart of SERV, below, we can see that prices declined in just March and then quickly recovered those losses and more. Many stocks declined from February into March so this subtle difference with how SERV behaved is a positive in my book. Prices have recovered to rally above the rising 50-day moving average line and above the bottoming 200-day moving average line.
The On-Balance-Volume (OBV) line shows a long base, but a rising pattern beginning in May. Buyers of SERV have become more aggressive over the months. The Moving Average Convergence Divergence (MACD) oscillator has been mostly bullish since April.
In this weekly bar chart of SERV, below, we can see that prices suffered a big decline from the middle of 2019, but there are some bright spots on the chart. Prices are trading above the bottoming 40-week moving average line. The weekly OBV line made a much milder decline in the past twelve months than prices did and suggests that SERV fell largely of its own weight. The Moving Average Convergence Divergence (MACD) oscillator is now moving above the zero-line for an outright go long signal.
In this daily Point and Figure chart of SERV, below, we can see that prices reached their upside price target of around $42.
In this weekly Point and Figure chart of SERV, below, we can see that $61 is a potential longer-term price target.
Bottom line strategy: Traders could probe the long side of SERV close to $40 while risking a close below $35. The $60 area is our price target.
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