In his second "Executive Decision" segment of "Mad Money" on Thursday night, Jim Cramer sat down with Aaron Jagdfeld, chairman and CEO of Generac Holdings (GNRC) , a maker of power generation products.
Jagdfeld said the $4 trillion energy industry will be upset within the decade by advances in renewable energy and energy storage technology. Following two acquisitions related to that technology, Generac has added energy-storage offerings that allow homeowners to generate, store and use their own power.
Energy storage, said the CEO, will likely become as big a business as the company's legacy generator business.
Let's check out the charts and indicators.
In this daily bar chart of GNRC, below, we can see that prices have more than doubled in the past 12 months. Prices are below the rising 50-day moving average line, but well above the rising 200-day line. The On-Balance-Volume (OBV) line has been positive for the past year and does not suggest that traders have become more aggressive sellers. The Moving Average Convergence Divergence (MACD) oscillator has been volatile in recent weeks, but it still remains above the zero-line.
In this weekly bar chart of GNRC, below, we can see a mostly bullish picture. Prices are above the rising 40-week moving average. The weekly OBV line is strong and the MACD oscillator has not turned lower.
In this Point and Figure chart of GNRC, below, we can see a potential upside price target in the $152 area.
Bottom line strategy: We hope GNRC continues to hold above the $100 level. A break of $100 could precipitate further weakness, but otherwise I would look for renewed strength.