The markets have been on fire since the fourth quarter's compressed bear market, which ended on Xmas. But that doesn't mean all of the gains are over.
During Friday's Mad Money program, Jim Cramer looked at the biggest winners since the December lows to see which stocks still have room to run. Topping the list was cosmetics maker Coty, Inc. (COTY) .
In this daily bar chart of COTY, below, we can see how prices made a low in late December, were steady in January, and exploded to the upside with two gaps and heavy volume in February.
Prices have held steady the past two weeks and look poised for still more upside. COTY is above the rising 50-day moving average line and has been testing the bottoming 200-day moving line. The volume of trading is interesting in that it has been increasing from August and was very heavy in February.
Despite prices going down the past 12 months, the On-Balance-Volume (OBV) line has moved sideways from June and broke out to the upside in early February.
The Moving Average Convergence Divergence (MACD) oscillator crossed the zero line in early February for an outright go-long signal.
In this weekly bar chart of COTY, below, we can see that prices are testing the declining/bottoming 40-week moving average line.
Trading volume was heavy in 2016 when prices began to skid lower, and has increased as prices approached their nadir and rallied.
The weekly OBV line has been strong from December and signals some very aggressive buying.
The weekly MACD oscillator shows a cover-shorts buy signal in January.
In this Point and Figure chart of COTY, below, we can see the base and the sharp rally in price without the gaps. An upside price target of $18 is being indicated.
Bottom line strategy: COTY does not display a well-developed base pattern, but it does look poised to trade higher. Maybe we will see a dip towards $10 to be a buyer risking a close below $9. $18 is our longer-term upside price target.