During the Lightning Round of Mad Money Monday evening, one caller asked Jim Cramer about Interpublic Group of Cos. (IPG) . Cramer replied, "I think they're doing a good job and the stock only trades for 11 times earnings."
Let's pay a visit to the charts and indicators to add them to the analysis.
In this daily bar chart of IPG, below,we can see a long sideways pattern of trading. Prices are holding/trading around the lower end of the range with the 50-day and 200-day moving average lines with negative slopes now.
The On-Balance-Volume (OBV) line has been declining from the middle of June suggesting that sellers of IPG have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line in a sell mode.
In this weekly bar chart of IPG, below, we can see that prices are more in a downtrend from early 2018 than a sideways pattern.
Prices are below the declining 40-week moving average line. The weekly OBV line recently turned down and the MACD oscillator is breaking below the zero line.
In this Point and Figure chart of IPG, below, we can see a modest downside price target of $19.43 being projected. The problem with this price target is that if it is reached we will probably see more weakness as the late December 2018 low could be tested.
Bottom line strategy: If you are looking to go long IPG I think you should wait for a better buying opportunity and more signs of a bottom formation.