Last evening for his "Executive Decision" segment of "Mad Money", our own Jim Cramer sat down with Cord Christensen, chairman and CEO of PetlQ (PETQ) . PetIQ is a pet health care provider and its stock price is up over 68% for 2018. Jim covered the fundamentals with Cord but what about the charts and indicators? Let's check them out.
In this daily bar chart of PETQ, below, we can see a sideways market from last August until recently. Prices traded between the $18 area on the downside and the $28 area on the upside. Prices crossed above and below the 50-day moving average line.
By May there was enough data to calculate the 200-day moving average line. In June prices rallied above both the 50-day and the 200-day averages. In July the 50-day average crossed the 200-day line for a bullish golden cross.
Earlier this month prices gapped to the upside on heavy volume and the top of the trading range became support instead of resistance.
The daily On-Balance-Volume (OBV) line slowly moved higher the past 12 months but showed a stronger movement from early May.
The trend-following Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in June for an outright go long signal.
In this weekly bar chart of PETQ, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is bullish and so is the weekly MACD oscillator.
In this Point and Figure chart of PETQ, below, we can see an upside price target of $57.67.
Bottom line strategy: Traders should look to go long PETQ in the $36-$34 area risking below $30 and looking for long-term gains in the mid-$50's.