Guardant Health Inc. (GH) "is speculative, but I've been recommending it," said Jim Cramer during the Lightning Round of "Mad Money" Monday night.
Let's check out the charts. In this daily bar chart of GH, below, we can see the price action from the IPO in October. Prices had a strong rally into March, followed by a two month correction before prices saw renewed strength into July.
GH is above the rising 50-day moving average line. Trading volume looks "uneven," but the On-Balance-Volume (OBV) line has moved up and down with the price action. In June and July the OBV line has made a new high for the move up and so far prices have lagged or diverged from the price action.
The daily Moving Average Convergence Divergence (MACD) oscillator is above the zero-line and turning upwards for an outright go long signal.
In this Point and Figure chart of GH, below, we can see a potential upside price target of around $112 -- a new all-time high.
Bottom line strategy: GH looks like it can trade higher. Risking a close below $83, traders could probe the long side with price targets of $105 and $112.
