Five Below, Inc. (FIVE) was part of Jim Cramer's "Executive Decision" segment on Mad Money Wednesday night. Cramer hosted Joel Anderson, president and CEO of FIVE. The company recently posted a seven-cents-a-share earnings beat with a 2.7% rise in same-store sales that sent the stock gapping higher. Let's check out the charts and indicators to see how fundamental analysis and technical analysis can get along.
We last reviewed FIVE in late August and gave this advice: "If you are still long FIVE that is great. I would raise sell stop protection to just below $100 from below $70. Looking to go long FIVE? I would try to buy a dip towards $110 risking below $100 with $140 the next price target."
In the daily bar chart, below, we can see that FIVE has nearly reached our $140 price target. FIVE is above the rising 50-day moving average line as well as the bullish 200-day moving average line. A breakaway gap in early June remains and the upside gap this month is also likely to go unfilled.
The daily On-Balance-Volume (OBV) line has been in a strong rise since early June and tells us that buyers of FIVE are more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is pointed up in a bullish mode.
In this weekly bar chart of FIVE, below, the price gaps disappear but we can still see the strength. FIVE is above the rising 40-week moving average line.
The weekly OBV line has been strong the past three months and supports the rally. The weekly MACD oscillator fits right in with this bullish setup.
In this Point and Figure chart of FIVE, below, we can see a longer-term potential price target of $212.
Bottom-line strategy: Pretty much everything is pointed up on FIVE so our $140 price target should be reached soon. A round number to shoot for would be $200 before the Point and Figure target of $212. Raise sell stops to below $120.