Among the best performers in Jim Cramer's Go List was DuPont (DD) that's rallied sharply since August. We liked the upside on DD back on August 12 saying, "We recommended the long side of DD back on July 23, where we wrote, 'DD looks attractive from the long side. Traders should risk a close below $50 and add on strength. The $63 area is our first target followed by the $75 area.' Traders should continue to hold DD longs and consider adding to positions here. Raise sell stops to a close below $52 now."
Prices have passed our $75 price target so a new strategy is in order.
In this updated daily bar chart of DD, below, we can see a bullish alignment of price and indicators - rising moving averages, a bullish On-Balance-Volume (OBV) line and a bullish Moving Average Convergence Divergence (MACD) oscillator.
In this weekly bar chart of DD, below, we can see a positive looking longer-term picture.
In this weekly Point and Figure chart of DD, below, we can see that prices have reached an $81 price target. Further gains are possible but a period of sideways consolidation is more likely before further gains.
Bottom line strategy: Traders and investors who bought DD in July or August are doing nicely. Raise stop protection to $75 -- our price target. Our next price target is the $105 area after a period of sideways consolidation.
(DuPont is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells DD? Learn more now.)
