During Friday's Mad Money program Jim Cramer told viewers about a number of stocks he was focusing on this week. Today after the close of trading, Cramer will be looking at furniture maker Herman Miller (MLHR) to see if this company can thrive beyond the pandemic.
Let's check out the charts and indicators. Our last review was back on September 18, 2020.
In this updated daily bar chart of MLHR, below, we can see that prices climbed higher from the September upside price gap. There have been plenty of minor corrections along the way but it is a problem that trading volume has not expanded during the advance. Older technical analysts, like myself, like to see volume increase in the direction of the trend.
The math-driven On-Balance-Volume (OBV) line has not really made any upside progress since October and I would consider that a weakness. The slopes of the 50-day moving average line and the 200-day moving average line are positive.
The Moving Average Convergence Divergence (MACD) oscillator is pointed down in a take profit sell mode but the two moving averages that make up the indicator have narrowed in recent days.
In this weekly Japanese candlestick chart of MLHR, below, we see a mixed picture. Prices are in an uptrend above the rising 40-week moving average line. Prices have recovered to the highs seen in late 2019 but a doji is visible at the beginning of June. A doji is a reversal pattern.
The weekly OBV line jumps around more than my EKG. The weekly MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of MLHR, below, we can see that the software is projecting a potential downside price target in the $39 area.
In this weekly Point and Figure chart of MLHR, below, we can see a potential upside price target of $61 but we also recognize that a trade at $38.23 could weaken the picture.
Bottom line strategy: I have no special knowledge of what MLHR could report for earnings later today but the impression I get from the charts and indicators is that I would avoid the long side of MLHR for now.
