Several years ago, Delphi Automotive fell on hard times, a victim of poor management decisions and struggling US automotive companies.

The company filed for bankruptcy and has emerged much stronger. In fact, since exiting bankruptcy in 2012, the stock is up over 500%. The stock continues to push forward as the economy gains strength, but there may be even more upside for those who are patient.

The chart is quite constructive. You can clearly see a series of higher highs and higher lows on really good volume. Look at the money flow in the bottom pane; it has only dipped into negative territory once since the summer. This indicates institutional sponsorship. The recent break out of the September highs is holding on good turnover – a positive sign – and the MACD is still on a strong buy signal.

I believe the stock will take the path of the orange line.

(Click on image to enlarge)