Jim Cramer discussed IAC/InterActiveCorp (IAC) on his "Mad Money" program last night. Cramer said IAC remains a buy and he thinks shares can still go a lot higher. IAC has been in a strong uptrend from early 2016 and earlier this month it exploded higher from a six-month consolidation pattern.
Prices are now pulling back so we can get an opportunity to go long. Let's review the charts and indicators to round out the analysis.
In this daily bar chart of IAC, below, we can see the uptrend from last August and the sideways trend from February. IAC made lower highs and higher lows until earlier this month when prices exploded to the upside.
IAC is above the rising 50-day moving average line. IAC is above the bullish 200-day line which was successfully tested in early May, late July and early August.
The daily On-Balance-Volume (OBV) line has been in a rising phase the past 12 months which tells us that buyers of IAC have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a very bullish configuration - rising sharply from above the zero line.
In this weekly bar chart of IAC, below, we have a mixed picture. Prices are above the rising 40-week moving average line.
The weekly OBV line has been in a slight decline the past year and needs to turn up strongly to confirm the price breakout.
The weekly MACD oscillator just crossed to the upside for a fresh go long signal.
In this Point and Figure chart of IAC, below, we can see a very bullish long-term price target of $296. Impressive.
Bottom line strategy: I don't know how much IAC will pullback. $180? $170? For me it is easier to go long on a new high. I would go long above $197.44 (a new high on the Point and Figure chart). The $250 and then perhaps the $300 area are the potential price targets.