Sinclair Broadcast Group ( SBGI) Stock Chart Review

Well, let’s see if I can write an article on a company that Trendy Stock Charts members can actually read before they get bought out. That was a reference to yesterday’s article about Mobileye (MBLY) in case you missed it.

After spending 4-5 hours Sunday researching some good looking charts and coming up with a $61 short-term price target, Intel Corporation (INTC) announced this morning that they are acquiring Mobileye for $63.54 per share. Why couldn’t I have seen the charts for Mobileye a week ago?

Sinclair Broadcast Group (SBGI), a stock I used to analyze on the side with LittleBass several years ago, is another stock chart that I saw over the weekend which looks worthy of being included on your watch list. You can click on the company logo to visit the official website for SBGI.

There seems to be a lot of competition into not only delivering, but developing unique media content. They have always said content is king and that is proving true more than ever these days. Media companies play a vital role in delivering that content. And even media companies themselves have been merging in the last couple of years, trying to stay relevant.

I’m not exactly sure what sets Sinclair Broadcast Group (SBGI) apart from the others without further research, but I do know that its charts are looking rather bullish. So let’s start with the charts for now and not waste any time – who knows what will happen with this next pick!

SBGI – 4 Year Trading Channel Breakout

This is a 5 year weekly candlestick chart for Sinclair Broadcast Group (SBGI). It looks like it’s share price has been stuck in a trading range for the last 4 years. It finally broke out of that trading range in the end of February 2017. While not marked on this chart, the bottom of the Trading Channel is around the $24 price level, making the width of the channel approximately $12. This will be important to note in some calculations for upside price targets.

Analyzing a Breakout from a Multi-Year Trading Range for Sinclair Broadcast Group (SBGI)

Since Sinclair Broadcast Group (SBGI) developed a Shooting Star candlestick pattern on the above chart last week, that could be an indicator that the[s2If !current_user_can(access_s2member_level1)]….

If you want to continue reading this article for Sinclair Broadcast Group ( SBGI), you must first login. I look at some pullback areas to begin building a position in the stock as well as some of its upside target prices, both short and long term.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] pullback to re-test the support area has begun. However there is a very good chance that SBGI may have a little further to go it its uptrend, possibly one last push past the Shooting Star candlestick’s resistance area before a re-test of its breakout area begins.

This next chart will illustrate why I think SBGI could still have a last surge in its uptrend.

SBGI – Upside Price Targets

This is a 1 year daily candlestick chart where I left the Trading Channel on it from the weekly chart. I also placed a Fibonacci Extension Tool on the first uptrend and pullback during SBGI’s current ascent.

First, the SBGI’s share price has not yet traveled the width of the Trading Channel during its current breakout. That is the first indicator that makes me think SBGI’s share price is heading higher first before a re-test of the $36 breakout area occurs. And second, the $48 price target calculated by the Trading Channel breakout seems to be confirmed by the Golden Ratio, or the 161.8% Target Line in SBGI’s current uptrend.

Analyzing a $48 Probable Short-Term Upside Target Price for Sinclair Broadcast Group (SBGI)

With the MACD Histogram on the daily chart for Sinclair Broadcast Group (SBGI) starting to show some selling momentum, SBGI’s share price may pullback towards the $38 area before then surging towards the $48 price target.

I don’t think SBGI’s share price will re-test the breakout area fully until SBGI first reaches its $48 price target. However, whenever SBGI’s share price does re-test the breakout area, that is a great opportunity to make a scale-in purchase and go long shares.

SBGI – Moving Averages

This is a 1 year daily chart for SBGI using moving averages. I’ve left all the previous markings from the previous 1 year chart and just overlaid the moving averages. It looks like the 20 Day moving average (purple line) should be used to work up to the Golden Ratio, or the 161.8% Target Line.

Analyzing Moving Averages for Sinclair Broadcast Group (SBGI) Stock Chart

A pullback to the $39.50 area for the aggressive can be used to trade up to the $48 price target. For those less aggressive traders and investors, wait to see if the $36 price level offers up any opportunities.

From an Elliott wave perspective, it looks to me as if Wave 4 of a Bullish Impulse wave pattern is in the process of developing. It should find support around the 20 Day moving average and then proceed to complete Wave 5 to the upside and reach the $48 price level.

SBGI – P&F Chart

This is a P&F Sinclair Broadcast Group (SBGI) stock chart. This one is based on intra-day high/low activity rather than just closing prices. It shows a current price target of $54 for SBGI’s share price.

A Point & Figure Sinclair Broadcast Group (SBGI) Stock Chart Illustrating a $54 Price Objective

The bullish price objective of $54 on the above P&F chart is a result from breaking out of a Double Top Breakout on February 9, 2017, according to the details for the above chart.

Sinclair Broadcast Group ( SBGI) – Summary

Whether you join the trade or wait for the re-test of the breakout area most likely depends upon your trading style. I am going to set an alert on SBGI’s share price so that when it crosses below the $39 price level I am sent a text message alert. At that point, I will look to re-analyze the chart and start watching for the probable re-test of the breakout area to complete.

Purchasing some shares to go long below the $40 price level seems like a decent place to enter the trade at least back up to the $48 area, if not higher.

With a bearish reversal candlestick pattern on its weekly chart, and selling momentum just starting on the daily chart, a pullback of some degree appears eminent. A $39.50 trade opportunity could lead to approximately 20% profits