The New York Times is one of the most popular newspapers with worldwide influence. It has won a staggering 127 Pulitzer prizes. The newspaper founded in 1851 and over the years has become the 3rd most circulated newspaper in the US.
NYT has adapted itself to technological transformations and is making a shift towards digital. In fact, the company has crossed 4 million total digital subscriptions. The brand name and the influence of the newspaper are its biggest assets and will be the driver of its upward longer term trajectory.
A snapshot of the 20-year monthly chart for the stock shows a clear up-trend which started in late 2016. More recently, there has been a pullback of almost 20% in early March. A clear support level is visible around $28 (marked by the red dashed line). This has been an area of value for almost 8 months, during which a double-bottom pattern has formed.
This month in April, the stock has reversed from its March fall and is currently at $31.50. This short-term up-move has resulted in a gap fill as well and the current price is a good trigger point for an entry to go long. The current price is close to the bottom of a 3-year trend as showed by the bottom yellow trend line.
Positions taken at $31.63 with stop loss 19.31% below at $25.52. Short to medium term traders Take profit target at $38.90 represents 23% profit.