During the popular "Lightning Round" segment of Mad Money Thursday night, one caller questioned Jim Cramer about Maxar Technologies (MAXR) : "This is the right place to be. I like this one," said Cramer about the space technology company.
Let's check it out.
In this daily bar chart of MAXR, below, we can see that prices have been on defense since the middle of January. MAXR more than doubled in a year-end rally but then turned lower. Prices made a low in May and we can see a so far successful retest of the May low this month, and MAXR is trying to climb back above the 50-day and 200-day moving average lines.
The On-Balance-Volume (OBV) line declined from January to a low in May from which it is trying to show improvement. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line and trying to cross to the upside for a cover shorts buy signal.
In this weekly Japanese candlestick chart of MAXR, below, we can see that prices made a bottom pattern around $5 before launching a rally. In recent months we can see a number of lower shadows below $30 telling us that traders are rejecting those prices. The 40-week moving average line is cresting and prices are trading below it.
The weekly OBV line has been stalled since January. The MACD oscillator is hugging the zero line which tells me that there is little trend strength.
In this daily Point and Figure chart of MAXR, below, we can see a potential upside price target in the $40-$41 area.
In this weekly Point and Figure chart of MAXR, below, we can see a projected price target of around $70.
Bottom line strategy: Aggressive traders could go long MAXR at current levels risking a decline to $27. $40 and then $70 are our price targets for later this year.
