Duluth Holdings (DLTH) was favored by Jim Cramer in his fast-paced 'Lightning Round' of his popular Mad Money program on Monday night. Responding to a caller, Jim said: "I am a huge believer of their products. I say buy, buy, buy."
Let's take a few minutes to check out the charts and indicators to see if investors love the stock too.
In this daily bar chart of DLTH, below, we can see a mixed picture for the shares of this clothing company. Prices doubled last year from around $16-$17 to the $34-$35 area but those gains were not long sustained and prices retreated back to $20 last month.
Prices worked unevenly lower from early September to January and we do not have any clear signs that the selloff is over yet. The slope of the 50-day moving average line turned bearish in November and now the 50-day line is poised to break below the cresting 200-day line for a bearish death cross.
The daily On-Balance-Volume (OBV) line has been neutral/sideways from September - not suggesting that buyers nor sellers have been more aggressive the past five months.
The Moving Average Convergence Divergence (MACD) oscillator shows two cover shorts signals in December and January but it is still below the zero line and an outright buy signal.
In this weekly bar chart of DLTH, below, we do not see the indicators positioned for a rally. Prices are trading below the rising 40-week moving average line.
The weekly OBV line shows a peak in October and a decline, while the MACD oscillator is below the zero line and probably weeks away from a cover shorts buy signal.
In this Point and Figure chart of DLTH, below, we can see an upside price target of $26.84 being projected. A trade at $24.68 will be a minor breakout.
Bottom line strategy: DLTH may try the upside a bit, however the technical studies are not compelling and the upside price target does not excite me. Look for better opportunities somewhere else.