Leidos Holdings (LDOS) is a new name on Jim Cramer's radar and it makes my list of attractive looking stocks from a technical perspective. LDOS has have a nice rally from its August nadir and it is poised to move significantly higher in the months ahead.
In this daily chart of LDOS, below, we can see a big gap to the downside in August but notice how quickly prices recuperated and went on to make new highs. Prices are above the rising 50-day simple moving average line and the rising 200-day line. There is a bullish golden cross of these averages in late December.
The On-Balance-Volume (OBV) line is positive and the Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line.
In this weekly chart of LDOS, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has been very positive since August and signals that buyers of LDOS have been very aggressive. The weekly MACD oscillator is above the zero line and poised to generate a crossover to a fresh outright buy signal.
In this Point and Figure chart of LDOS, below, we can see the breakout and the next big upside price target of $88.
Bottom line: Aggressive traders can go long LDOS here and they can buy more on strength above $56. A sell-stop below $50 is suggested at this time. Our point and figure price target is $88.