During Tuesday night's Mad Money program one caller during the 'Lightning Round' inquired about Aqua America ( WTR) : "I think it's terrific and you should own it," said Jim Cramer.
In this daily bar chart of WTR, below, we can see a small double bottom pattern in November/December followed by a nice uptrend into September.
Prices are above the rising 50-day moving average line with WTR surviving a number of tests of that indicator. WTR is also above the rising 200-day moving average line and prices are looking a little extended above the line.
The daily On-Balance-Volume (OBV) line shows a positive pattern telling us that buyers of WTR have been more aggressive the past year.
The Moving Average Convergence Divergence (MACD) oscillator is turning up to a fresh buy signal.
In this weekly bar chart of WTR, below, we can see that prices made a large consolidation pattern between $32 and $38/$39 that can support a significant rally. Prices have risen since late 2018 but more gains look possible.
WTR is above the rising 40-week moving average line. The weekly OBV line is bullish and so is the MACD oscillator.
In this weekly close only Point and Figure chart of WTR, below, we can see a potential upside price target of $67 or roughly a double from the lower part of the consolidation pattern (see the commentary about the weekly chart above).
Bottom line strategy: WTR might trade sideways a little longer and traders could use that as an opportunity to go long or add to existing longs. Risk below $42 looking for gains to the $67 area.
