• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

BJ's Wholesale Club Can Keep Climbing Higher on the Charts

BJ is trading firmly with only short-lived and shallow corrections.
By BRUCE KAMICH
Aug 21, 2020 | 11:40 AM EDT
Stocks quotes in this article: BJ, COST

During the "Lightning Round" segment of Mad Money Thursday night, one caller asked Jim Cramer about BJ's Wholesale Club (BJ) : "This is an incredible stock. That was a terrific quarter. I'm a Costco (COST) guy, though."  

 
Let's check out the charts of BJ. 
 
In this daily bar chart of BJ, below, we can see a different pattern than many other stocks recently. Prices declined from November to the end of February and then began a strong rally. Prices were volatile in March but did not plunge to new lows. Prices have more than doubled from the late February-early March low and more gains look likely. BJ is trading firmly with only short-lived and shallow corrections.
 
Prices are above the rising 50-day moving average line as well as above the rising 200-day moving average line. A bullish golden cross of the 50-day and 200-day averages can be seen at the end of April which is early in the rally.
 
The On-Balance-Volume (OBV) line has moved up strongly with the price action and tells us that buyers of BJ have been more aggressive.
 
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in March for a buy signal and now looks like it can turn higher again for a fresh outright buy signal.  
 
 
In this weekly bar chart of BJ, below, we can see two years of price activity. The picture is bullish with prices above the rising 40-week moving average line. Prices broke out of a sideways consolidation pattern in May so we should see prices marked up a number of times from the $24 level or the midpoint of the pattern.
 
The weekly OBV line is improving and the MACD oscillator is in a bullish alignment above the zero line.  
 
 
 
In this first Point and Figure chart of BJ, below, we used daily price data and here a nearby price target of $51 is being projected.  
 
In this weekly close only Point and Figure chart of BJ, below, we can see a potential price target in the $72 area. 
 
 
Bottom line strategy: While Jim Cramer favors COST, the charts of BJ are positive too. Traders could go long BJ on any dip into the $44-$42 area risking a close below $39 for now. $51 and then $72 are our price targets. 
 

(Costco is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells COST? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Retail | E-Commerce | Mad Money

More from Investing

Bearish Bets: 2 Nasdaq Stocks You Should Consider Shorting This Week

Bob Lang
Apr 18, 2021 10:30 AM EDT

These names are displaying both quantitative and technical deterioration.

Navigating the Cycles of the Market

James "Rev Shark" DePorre
Apr 17, 2021 10:00 AM EDT

How Recency Bias and the Pareto Principle impact your trading decisions.

Netflix Reports Earnings on Tuesday: 5 Important Things to Watch

Eric Jhonsa
Apr 17, 2021 8:00 AM EDT

Along with its total subscriber adds, keep an eye on Netflix's regional growth rates, as well as its free cash flow guidance and content spending outlook.

Market Indices Continue to Hide Crazy Rotational Action

James "Rev Shark" DePorre
Apr 16, 2021 4:41 PM EDT

Fundamentals and valuations are secondary to shifting money into certain sectors.

Is the Market Wrong on Bank of America? Here's What the Charts Say

Bruce Kamich
Apr 16, 2021 2:21 PM EDT

Let's check in again on BAC after its latest earnings.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:05 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How recency bias and the Pareto Principle impact y...
  • 02:42 PM EDT PAUL PRICE

    Wednesday on Real Money Pro

    Make this stock a 'part' of your portfolio.
  • 04:44 PM EDT PAUL PRICE

    Pretty Incredible + Hard to Believe

  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login