Iridium Communications (IRDM) : "I think it's got a great business model, and I think it's a buy," said Jim Cramer to one caller during the 'Lightning Round' segment of Mad Money Monday night. Let's review the latest charts of IRDM.
In this daily bar chart of IRDM, below, we can see that prices have been stuck in a sideways trading range since March with buying interest coming out around $20 and resistance appearing around $27-$28.
Prices are just above the rising 50-day moving average line and the rising 200-day moving average line.
Trading volume has declined from the middle of September and the daily On-Balance-Volume (OBV) line has shown weakness from April suggesting that sellers have been more aggressive for several months.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and poised to turn up to a new buy signal.
In this weekly bar chart of IRDM, below, we can see a picture that appears stronger than the daily chart. Prices are above the rising 40-week moving average line.
The weekly OBV line is close to a new (bullish) high. This is close to turning up to a fresh outright go long signal.
In this Point and Figure chart of IRDM, below, a downside price target of $16 is being projected but a trade at $28 will be a new high and an upside breakout. $28 is not far away.
Bottom line strategy: IRDM looks like it will break out on the upside but it is taking forever. Wait for a trade at $28 before going long.
