During Wednesday's "Mad Money" program, Jim Cramer highlighted General Electric (GE) , which told shareholders it expects to return to positive cash flow in the second half of 2020. That was great news for all of the industrials, with Cramer naming 3M (MMM) and Honeywell (HON) as his favorites. Let's quickly check out these three names to see how things have been shaping up.
In this daily bar chart of GE, below, we can see that prices have improved recently with a rally above the 50-day moving average line and breaking above the high of August. Trading volume was very heavy recently and the On-Balance-Volume (OBV) line now shows a welcomed uptick. The Moving Average Convergence Divergence (MACD) oscillator is very close to crossing above the zero-line.
In this daily Point and Figure chart of GE, below, we can see a small upside breakout and a price target in the $8.51 area.
In this daily bar chart of MMM, below, we can see that prices have been "stair-stepping higher" from the March low. Prices are trading above the rising 50-day moving average and the bottoming 200-day moving average line. The OBV line has turned upwards from June telling us that buyers of MMM have turned more aggressive. The MACD oscillator is above the zero-line in bullish territory.
In this daily Point and Figure chart of MMM, below, we can see prices are pointed higher with a potential $215 price target.
In this daily bar chart of HON, below, we can see that prices have strengthened enough to generate a bullish golden cross of the 50-day and 200-day moving average lines. The OBV line has been very strong since March and has made a new high for the move up ahead of prices making a new 52-week high. The MACD oscillator is bullish.
In this daily Point and Figure chart of HON, below, we can see that prices are pointed higher with a potential price target of $193.
Bottom line strategy: When you get a number of charts/companies in a sector that are bullish it is sending you a message - time to look for opportunities from the long side.
