Carrizo Oil & Gas, Inc. (CRZO) was reviewed back in late November where I was bullish and wrote, "An aggressive trader could long CRZO here and on strength above $21 where the 200-day moving average line intersects....look for gains to $29-$30 area."
Now that CRZO has nearly reached our price target and still looks strong, a fresh look at the charts and indicators is in order.
(For more on CRZO, see Who Are the Trade War Victims?: Jim Cramer's 'Mad Money' Recap)
In this daily bar chart of CRZO, below, we can see a bullish set-up with the trend and the moving averages. CRZO is above the rising 50-day moving average line and the rising 200-day average. In the middle of May the 50-day average line crossed above the 200-day line for what is commonly called a bullish golden cross.
The daily On-Balance-Volume (OBV) line made a low in late February and has been rising, telling us that buyers of CRZO have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) crossed above the zero line in April for an outright go long signal. This oscillator corrected in May but is now poised to turn up to a new outright buy signal.
In this updated weekly bar chart of CRZO, below, we have a bullish alignment of our favorite indicators. CRZO is above the January 2018 zenith. Prices are above the rising 40-week moving average line.
The weekly OBV line has been rising since March and tells us that buyers of CRZO have been more aggressive on this time frame.
The weekly MACD oscillator crossed above the zero line last month for an outright go long signal.
In this Point and Figure chart of CRZO, below, we can see an upside price target of $51.50. A decline below $23.00 would weaken this chart.
Bottom line: Traders and investors who are long CRZO should hold risking below $22 for now. Additional longs or new buyers could enter on strength above $29. The $35 area is our intermediate-term price objective and also a potential resistance area. Longer-term $50 may be reached.