During Friday's Mad Money program, Jim Cramer gave viewers his game plan for this week. On Tuesday we will hear from uniform supplier Cintas (CTAS) which will provide an update on the small business economy.
Let's check out CTAS to see if we need more starch in our uniform.
In this updated daily bar chart of CTAS, below, we can see that prices made a low in March when the broad market bottomed and then a successful retest of that low in early April. Prices turned higher and rallied into November. CTAS has turned sideways in recent weeks.
Prices are testing the rising 50-day moving average line while the 200-day moving average line is rising too and not likely to be tested anytime soon.
The On-Balance-Volume (OBV) line has been stalled since the middle of October and suggests to us that buyers and sellers of CTAS are mostly in balance.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is pointed down and just above the zero line. Further price weakness could mean we see a sell signal.
In this weekly bar chart of CTAS, below, we can see the dramatic rally that CTAS has made this year. Prices have more than doubled from the low of March. CTAS is trading above the rising 40-week moving average line.
The weekly OBV line is pointed up and that is bullish, but the MACD oscillator has turned neutral.
In this daily Point and Figure chart of CTAS, below, we can see a modest downside price target around $335.
In this weekly Point and Figure chart of CTAS, below, we can see a major longer-term price target in the $476 area.
Bottom line strategy: While our longer-term Point and Figure chart is bullish, we must navigate the short-term jiggles. CTAS could dip to $335 or even $315 in the next few weeks. Finding good support/buying interest around $315 could be a buying opportunity but wait for it.
