Summer’s Hottest Cooler is Trending Up

On Friday, we looked at a Daily Price Chart of EverQuote Inc., noting the stock’s 50-Day EMA is trading above the 100-Day EMA, signaling a bullish trend.

Today’s chart is for Yeti Holdings Inc. (NYSE: YETI).

Yeti Holdings, Inc. designs, markets, retails, and distributes products for the outdoor and recreation market under the Yeti brand in the United States, Canada, Australia, and Japan.

The company offers hard and soft coolers, as well as storage, transport, outdoor living, and associated accessories.

It also provides drinkware products, including coasters, lowballs, stackable pints, mugs, tumblers, bottles, jugs, and accessories such as bottle straw caps, tumbler handles, and jug mounts under the Rambler brand.

Now, the Daily Price Chart below shows that YETI is in a price uptrend because the current price of YETI is trading higher than it was exactly five months ago.

We know this thanks to the On Balance Volume (OBV) Chart, shown below the Daily Price Chart.

Here’s what you need to know about the OBV Line: it measures how much volume is either pushing the stock up, or down. Meaning, the volume of stock that’s being sold or bought.

Using a stock’s volume in this way can confirm an uptrend by reflecting that more people are buying the stock than are selling it (or vice versa for a downtrend). Take a look at the chart below…

We can see from the OBV chart shown above that the OBV line for YETI is sloping up.

An up-sloping line indicates that the volume is heavier on up days and buying pressure is exceeding selling pressure.

Buying pressure must continue to exceed selling pressure in order to sustain a price uptrend.

So, OBV is a simple indicator to use that confirms the price uptrend and its sustainability.

The numerical value of the OBV line is not important. We simply want to see an up-sloping line to confirm a price uptrend, which is displayed in the chart above.

We’ll be sure to keep following Yeti Holdings Inc., as the stock’s buying pressure exceeds it’s selling pressure and the price uptrend continues.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

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