In the "Lightning Round" segment of Mad Money Thursday night, Jim Cramer was bullish on a number of stocks including Estee Lauder EL. We last recommended EL back on May 4, writing that "The charts and indicators for EL are constructive and aggressive traders could probe the long side risking a close below $160. The $210 area is our target."
With prices trading around $234 a fresh review is needed.
In this daily bar chart of EL, below, we can see that prices have pushed higher into October. EL is trading above the rising 50-day moving average line as well as the bullish 200-day moving average line.
The On-Balance-Volume (OBV) shows a slow and steady upward trend telling us that buyers of EL remain more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since May.
In this weekly bar chart of EL, below, we can see that prices are in a longer-term uptrend. Prices are above the rising 40-week moving average line.
The weekly OBV line is steady and the MACD oscillator is clearly bullish.
In this daily Point and Figure chart of EL, below, we can see a potential upside price target in the $292 area.
Bottom line strategy: Continue to hold longs recommended back in May. Raise stop protection to a close below $214. The $292 are is our next price target.
