Here's what Jim Cramer had to say about one the stocks that callers inquired about during the Mad Money 'Lightning Round' segment Monday evening. Cracker Barrel Old Country Store (CBRL) : "I've liked this stock forever. If it comes down, I'd be a buyer."
Let's check out the charts of CBRL to see if they suggest that this is a good time to be going long.
In this daily bar chart of CBRL, below, we can see that prices have hammered out a four to five month base pattern. Not particularly big as bases go and in this current weak price environment for the broad market, a retracement back into the base would not be a big surprise. Prices are above the flat 200-day moving average line and above the rising 50-day moving average line.
The daily On-Balance-Volume (OBV) line has been climbing the past 12 months and tells us that buyers of CBRL have been more aggressive even when prices have declined like they did from July to November.
The Moving Average Convergence Divergence (MACD) oscillator is in a positive configuration above the zero line.
In this weekly bar chart of CBRL, below, we can see that prices have been stuck in a long sideways trading range the past three years. Prices are now above the 40-week moving average line but its trend is pointed down.
The weekly OBV line shows some improvement in the last three months and is not as bullish looking as the daily OBV line which shows a rise for the past year.
The MACD oscillator on this longer time frame shows a recent cover shorts buy signal.
In this daily Point and Figure chart of CBRL, below, we can see a potential upside price target in the $187 area.
Bottom line strategy: CBRL could pull back to the $166-$164 area without upsetting the bottoming price action.