Dick's Sporting Goods Is in a Race to the Upside

The long side of DKS is attractive even at these heights.
Stocks quotes in this article: WMT, AMZN, TGT, COST, HD, BBY, DKS

In the No-Huddle Offense segment of his Mad Money program Wednesday night, Jim Cramer added a few names to his list of favorite retailers. He said that his WATCH list, which includes Walmart (WMT) , Amazon (AMZN) , Target (TGT) , Costco (COST) , and Home Depot (HD) all remain strong. After analyzing this quarter's results, there are a few more names worth noting. Cramer said that Best Buy (BBY) and Dick's Sporting Goods (DKS) both benefited as their competition got pancaked during the pandemic. 

 
Let's check out the charts of Dick's.

In this daily bar chart of DKS, below, we can see that prices gapped up to a new 52-week high the other day. Prices are above the rising 50-day moving average line and above the rising 200-day moving average line. Trading volume soared as traders and investors piled in aggressively.

 
The On-Balance-Volume (OBV) line made a new high telling us that buyers of DKS were more aggressive.
 
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since early May, and the recent price strength has turned the indicator to a fresh outright buy signal.  
 
 
 
In this weekly bar chart of DKS, below, we can see a bullish long-term picture. Prices have broken out to a new high. DKS is trading above the rising 40-week moving average line.
 
The weekly OBV line is just about to make a new high. The MACD oscillator is bullish and heading higher on this longer time frame.  
 
 
In this weekly Point and Figure chart of DKS, below, we can see a potential upside price target of $81. 
 
 
Bottom line strategy: Golfer, runner, trader, investor - whatever your passion, the long side of DKS is attractive even at these heights. New longs should risk below $48 while setting their sights on gains to the $81 area. 
 

(Amazon and Costco are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)

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TAGS: Investing | Stocks | Technical Analysis | Trading | Retail | Sports business | Mad Money

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