NiSource (NI) : "There's a stock I want to own. Great management and a good dividend," said Jim Cramer to a caller during Wednesday's "Lightning Round" segment of Mad Money.
Let's check out the charts of this utility company.
In this daily bar chart of NI, below, we can see that prices have slowly and quietly corrected since early May. NI is trading below the declining 50-day moving average line and currently testing the 200-day line.
Trading volume has been on the light side and the On-Balance-Volume (OBV) line shows a slight decline from late August. Sellers of NI are not being very aggressive and that is a plus in my opinion.
The Moving Average Convergence Divergence (MACD) oscillator has fallen below the zero line for a sell signal.
In this weekly Japanese candlestick chart of NI, below, we see a mixed picture. Prices are testing the 40-week moving average line. Trading volume has not increased on this minor decline which is good.
The OBV line shows only a small dip. The MACD oscillator is pointed lower but remains above the zero line.
In this daily Point and Figure chart of NI, below, we can see 20-years of price movement. Here the software projects the $39 area as a price target.
In this weekly Point and Figure chart of NI, below, we used a five box reversal filter. Here the software projects the $101 area as a potential price objective.
Bottom line strategy: The two Point and Figure charts of NI, above, are pretty bullish. Investors could probe the long side of NI at current levels risking a close below $23. $39 and $101 are the price targets.
