The bank holding company headquartered in Wellsboro, Pennsylvania, Citizens & Northern Corporation (NASDAQ: CZNC) shows signs of an upcoming price surge according to its latest charts.
Bullish Indications
#1 Falling Wedge Pattern Breakout: The daily chart of CZNC shows that the stock was trading within a falling wedge pattern for the past few months. This is marked in the daily chart in purple color. The stock had recently broken out of the falling wedge pattern and has now corrected near to the breakout level of the pattern. A falling wedge pattern is a bullish pattern and a breakout from this pattern shows that the stock has gained momentum and has the potential to move further up.
Daily Chart – CZNC
#2 Trading Above MA: The stock is currently trading above its 50-day moving average, indicating a possible bullish bias for the stock.
[hana-code-insert name=’adsense-article’ /]#3 Inside Bar: Currently, a bullish candlestick pattern of an inside bar has been formed in the daily chart.
This is marked as an orange ellipse.
This is the sign of possible bullish bias.
#4 Bullish CCI: The CCI is moving up in the daily chart, indicating possible bullishness.
#5 RSI moving up: The RSI is above 50 and moving up on the chart, indicating strength.
#6 Unbroken uptrend: The weekly chart shows that the stock is in an unbroken uptrend as it has been forming higher highs and higher lows during the past several months.
Weekly Chart – CZNC
#7 MACD crossover: In the weekly chart, the MACD (light blue color) had currently crossed above the MACD signal line (orange color) and has started to move upwards. A potential buy signal is generated when the MACD line crosses above the MACD Signal Line. This indicates a possible bullish setup.
#8 Trading Above MAs: The stock is currently trading above its 50-week as well as 200-week moving average, indicating a possible bullish bias for the stock.
#9 Bullish Stochastic: As you can see from the weekly chart, the %K line (blue color) is currently above the %D line (orange color), indicating a bullish bias.
Recommended Trade (based on the charts)
Buy Price: If you want to get in on this trade, you can purchase shares of CZNC at the current price of $26.02.
TP: Our target prices are $30 and $35 in the next 3 to 6 months.
SL: To limit risk, place a stop loss below $25.00. Note that this stop loss is on a closing basis.
Our target potential upside is almost 15% to 35% in the next 3-6 months.
For a risk of $1.02, our first target reward is $3.98 and the second target reward is $8.98. This is a 1:4 and 1:9 risk-reward trade.
In other words, this trade offers nearly 4x to 9x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the falling wedge pattern breakout level. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
Tara
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