During the fast-paced Lightning Round of Tuesday night's Mad Money program, Jim Cramer had this to say about Iridium Communications Inc. (IRDM) "This one took a long time to rally but it's a good company." IRDM is a mobile voice and data satellite communications network that spans the globe. It enables connections between people, organizations and assets to and from anywhere, in real time. In real time let's check out the charts and indicators.
In this daily bar chart of IRDM, below, we can see prices in a relatively tight sideways trading range from late November to late May. From late May prices launch to the upside in a strong rally. Volume surges strongly at the beginning and continues at a good pace. The On-Balance-Volume (OBV) line broke out on the upside before prices with its new highs in April. The OBV line has continued to grind higher to confirm the price action and tells us that buyers are more aggressive. Prices are above the rising 50-day moving average line and the bullish 200-day line. The trend-following Moving Average Convergence Divergence (MACD) oscillator turned back above the zero line earlier this month for a fresh outright go long signal.
In this weekly bar chart of IRDM, below, we can see that prices slowly inched higher from early 2016 with prices doubling by late 2017. The next doubling of price happened in just the last six months. Prices are above the rising 40-week moving average line. The weekly OBV line shows a bullish trend the past two years and the weekly MACD oscillator is crossing to the upside for a fresh outright go long signal.
In this Point and Figure chart of IRDM, below, we can see a big base pattern along with a potential upside price target of $32.50. A trade at $25 will be another double top breakout.
Bottom line strategy: Aggressive traders can go long IRDM at current levels and above $25, risk below $20 for now looking for gains to the $32-$33 area.
