During Monday's Mad Money " Lightning Round", one caller asked Jim Cramer about Boise Cascade (BCC) . Cramer replied: "I think this one is terrific. I like Trex (TREX) and Azek Company (AZEK) , and this one as well."
Let's check out the charts of Boise Cascade, the maker of building materials.
In this daily bar chart of BCC, below, we can see that prices just moved below the rising 50-day moving average line. A test of the late December and January lows could happen soon. A break of these lows could precipitate further declines.
The On-Balance-Volume (OBV) line has made slow upside progress since late December. The Moving Average Convergence Divergence (MACD) oscillator has been weakening since late December.
In this weekly bar chart of BCC, below, we can see a mixed picture. Prices are still in an uptrend above the rising 40-week moving average line.
The weekly OBV line looks stalled and the MACD oscillator is still bullish but narrowed and is close to a downward crossover.
In this daily Point and Figure chart of BCC, below, we can see a potential downside price target in the $42 area.
Bottom line strategy: Traders looking to go long BCC should be patient and look for a new base to develop around $40.
