During Thursday night's Mad Money program, Jim Cramer gave the nod to Dow Inc. (DOW) , which is turning itself around and has an impressive 5.7% yield.
In this daily bar chart of DOW, below, we can see that prices have turned up above the now rising 20-day and 50-day moving average lines. Because we only have a limited amount of price history we shortened our moving averages from 50- and 200 to just 20- and 50-days.
The daily On-Balance-Volume (OBV) line bottomed in May and has been rising since then telling us that buyers of DOW have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has turned up above the zero line this month for an outright go long signal. Stepping back from the chart we can see that a small, three-month base has been made.
In this Point and Figure chart of DOW, below, we can see the recent upside breakout at $50.01 and the potential price objective of $57.
Bottom line strategy: We do not have a lot of price history to work with but DOW has made a workable three-month base that can support further price gains. Traders could long DOW around $50 or better risking below $46 for now. $57 and $60 are our first upside price targets.
