Total S.A. ADR (TOT) was mentioned on Mad Money last night during the Lightning Round when Jim Cramer called it a winner. Let's look closer at the charts and indicators of TOT to see what sort of upside we might have along with the nice dividend.
In this daily bar chart of TOT, below, we can see that the price of TOT has been in an uptrend from late September to May. From May the price action has been more sideways than up, however, prices have broken out on the upside on our Point and Figure chart. TOT is trading above the rising 50-day moving average line and the bullish 200-day line. In the middle of August and early September prices successfully tested the rising 200-day line. The daily On-Balance-Volume (OBV) line has been working higher from late May and tells us that buyers of TOT have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line when TOT has been trading sideways but now this indicator looks to be turning up in a sustained manner.
In this weekly bar chart of TOT, below, we can see that our indicators are in positive positions. Prices are above the rising 40-week moving average line. The weekly OBV line has been rising the past three years and is close to making a new high for the move up. The weekly MACD oscillator is poised to cross to the upside for a fresh outright go long signal.
In this Point and Figure chart of TOT, below, we can see the strong pattern of higher highs and higher lows. Prices just broke out of a triple top with a $77.42 price target.
Bottom line strategy: With crude oil still in an uptrend and the Dollar Index rolling over to the downside you should be positive on TOT. Prices have broken out on the Point and Figure chart so traders should go long here and add on strength. Risk below $61 for now looking for the $77-$80 area on the upside.
