Compass, Inc. (NYSE: COMP) seems poised for a price surge based on its latest charts. The company provides real estate brokerage services in the United States.

It operates the Compass Platform, a technology platform that provides an integrated suite of cloud-based software for customer relationship management, marketing, client service, brokerage services, and other functionalities for the real estate industry; and the CIRE platform, a multi-tenant technology platform for affiliates and its agents.

Bullish Indications

#1 Flag Pattern:  The daily chart shows that the stock was in an uptrend after which it started consolidating and was in a narrow range. This is a classic flag pattern and is marked in the chart in purple color. Currently, the stock looks poised for a breakout from the flag. A Flag is a continuation pattern. Whenever a stock breaks out of the flag pattern, it typically continues its previous trend (uptrend in this case).

COMP – Daily Chart

#2 Price above MAs: The price is currently above the short-term moving average of 50-day SMA as well as the longer-term moving average of 200-day SMA, indicating that the bulls are still in control. This is a positive indication.

#3 Bullish ADX: The ADX indicator shows that the +DI line is currently above the –DI line and the ADX line has started to move up from below the –DI and +DI lines. This indicates possible bullishness.

#4 Bullish RSI: The daily chart shows that the RSI is currently above 50 and moving higher. This is a possible bullish sign.

#5 Above Support Area: As you can see from the weekly chart, the stock has currently moved up from a resistance-turned-support level. This level is marked as a pink color dotted line. This looks like a good area for the stock to move higher. The stock is also trading above its 50-week and 200-week SMA, indicating that the bulls are still in control.

COMP – Weekly Chart

#6 Bullish MACD: The MACD line is above the MACD signal line in the weekly chart as well, indicating bullishness.

#7 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30 in the weekly chart. This indicates possible bullishness.

Recommended Trade (based on the charts)

Buy Levels: If you want to get in on this trade, you can purchase shares of COMP above the price of around $11.00.

TP: Our target prices are $13.20 and $15.00 in the next 3-6 months.

SL: To limit risk, place a stop-loss at $9.70. Note that the stop-loss is on a closing basis.

Our target potential upside is 20% to 36% in the next 3 to 6 months.

For a risk of $1.30, our target rewards are $2.20 and $4.00. This is a nearly 1:2 and 1:3 risk-reward trade.

In other words, this trade offers nearly 2x to 3x more potential upside than downside.

Risks to Consider
The stock may reverse its overall trend if it breaks down from the flag pattern with high volume. 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

NEW THIS WEEK: Huge Energy Discovery In Utah [sponsor]
The Department of Energy say it could power America for millions of years. And both grizzled oilmen and clean energy supporters love it: Energy Secretary Chris Wright called it "an awesome resource," while Warren Buffett, Jeff Bezos, Mark Zuckerberg, and Bill Gates are all directly invested. Here's the name of the company at the heart of it all.