During the Lightning Round of Monday night's "Mad Money," Jim Cramer was bullish on Aqua America (WTR) . The company has climbed steadily higher this year and further gains probably lie ahead. The breakout in late April was important on longer-term charts. Let's dig out some charts and present our case for further gains.
In this daily bar chart of WTR, below, we can see the rally this year was punctuated by some brief corrections and pullbacks. Prices are above the rising 50-day moving average line as well as the bullish 200-day average. A bullish golden cross of these two averages can be seen at the end of March. The daily On-Balance-Volume (OBV) line shows a slow rise from last June and then a sharp rise from April. A positive OBV line occurs when buyers of a stock are more aggressive with heavier volume traded on days when the stock closes higher. The Moving Average Convergence Divergence (MACD) oscillator has been in bullish territory or above the zero line since late January.
In this weekly bar chart of WTR, below, we can see that prices have broken out above the highs of late 2017 and the highs of last year. WTR is above the rising 40-week moving average line. The weekly OBV line has been strong this year and the MACD oscillator is very bullish on this time frame.
In this Point and Figure chart of WTR, below, we can see a double-top breakout at $38.23 and an upside price target of $46.
Bottom line strategy: The charts and indicators of WTR are bullish, so traders and investors could look to go long on WTR on any weakness towards $40. Risk a close below $38.25.