In last night's Mad Money program Jim Cramer looked at Crocs Inc. (CROX) . CROX has been making a comeback and is a product that is still beloved by teens. Unlike Lulu and Yeti which trade at low multiples, CROX trades at a lofty 24 times earnings. Cramer said shares may still rise from current levels, but he couldn't recommend it at this valuation. Let's check out the charts.
In this daily bar chart of CROX, below, we can see an impressive rise in price the past year. Prices have more than doubled in the past twelve months and there are no signs of distribution (selling). Prices are above the rising 50-day moving average line and the bullish 200-day line.
The daily On-Balance-Volume (OBV) has been rising for much of the past year and tells us that buyers of CROX have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed recently. This indicator may or may not cross to a take profits sell signal.
In this weekly bar chart of CROX, below, we can see a more impressive advance than the daily chart. Prices are above the rising 40-week moving average line.
The weekly OBV line has been strong and bullish the past three years.
The weekly MACD oscillator is also bullish.
In this Point and Figure chart of CROX, below, there is an upside price target of $46-$47 being indicated.
Bottom line strategy: CROX may have a high valuation and it may be extended on the chart but the trend is up and we have a $46 price target on the Point and Figure chart. If you are long CROX hold that position but raise sell stop protection to just below $24 (the recent low).