Jim Cramer favored Pinnacle Entertainment (PNK) in his Lightning Round on last night's Mad Money program. The stock has been in a sideways to higher trading pattern all year, but we could see some softness in the short-run. Let's look at some charts and indicators and spin the roulette wheel.
The daily bar chart below shows that PNK's sideways movement has brought it near the rising 200-day moving average line. Prices are below the declining 50-day moving average line, and the daily On-Balance-Volume (OBV) line shows a May peak. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but poised for a possible cross to the upside, which would be a cover shorts buy signal.
This weekly bar chart shows a mixed picture for the stock. It's trading above the 40-week moving average line, but the line is starting to peak. The weekly OBV line has been stalled for several months, suggesting a balance between bulls and bears. The MACD oscillator is in a bearish mode and still pointed down towards the zero line.
This Point and Figure chart of PNK reveals a downside price target in the $31-$30 area.
Bottom line: PNK looks like it will test the 200-day moving average line just below $32. The key area to monitor is the February/March lows around $30.
