News Corp reaches new 2019 highs.

An upgrade from Credit Suisse (News Corp. (NASDAQ: NWSA was raised to Outperform from Neutral at Credit Suisse noting a focus on value after earnings.) has sparked a powerful breakout in shares of News Corp today. At mid day the stock is up 3% and is trading at new 2019 highs. This impressive move extends Friday’s 5% gain which cleared an 8 week bull flag. We expect more upside as this fresh rally leg develops.

Back on June 18th NWSA posted its best gain of 2019. We covered it here: https://twitter.com/GarySMorrow/status/1141065111643181056. A week later the stock began to consolidate after stretching the gain off the June lows to 22%. NWSA tested the 200 day moving average at last week’s low after piercing the lower band of the bull flag. Shares rebounded quickly and have been moving steadily higher since last Wednesday’s low.

NWSA has layers of support in place near the multi week June/July highs($13.60-$13.80).

The MACD indicator(daily) reached overbought levels in early July. Last week the MACD was back to neutral(room to run).

The November peak($14.40) is the next important hurdle.

We consider NWSA a buy on weakness. We are long NWSA in some managed accounts.