On Mad Money's second "Executive Decision" segment Friday night, Jim Cramer spoke with Stuart Bradie, president and CEO of KBR Inc. (KBR) , the company that provides professional services and technologies.
The stock has risen on optimism around their recent Investor Day presentation. The company has made a massive transformation from energy to more environmentally friendly solutions.
Further, most of the company's revenue now comes from government contracts.
With the Space Force in its infancy and more companies coming to the space front, it's going to be a very exciting arena to operate in over the long haul, he said.
KBR is also working with green ammonia solutions to help create a better renewable energy source. Being an ESG stock (environment, social and governance) is sustainable, while creating value and longevity for the future, he added.
Let's check out the charts of KBR to see if its strength is sustainable.
In this daily bar chart of KBR, below, we can see that prices sprinted to new highs last week. KBR is trading above the rising 50-day moving average line which has been tested several times this year. The slower-to-react 200-day moving average line is bullish and intersects down around $26.50.
The On-Balance-Volume (OBV) line has been working higher from late October and helps to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator appears to be turning upwards to a fresh outright go long signal.
In this weekly bar chart of KBR, below, we can see that prices have broken out over the highs of late 2019 and early 2020. KBR is trading above the rising 40-week moving average line.
The weekly OBV line shows a rise from August but has not broken out to its own new highs. The MACD oscillator is in a bullish alignment above the zero line.
In this monthly bar chart of KBR, below, we used all the available data from www.bigcharts.com. Here we can see that prices are testing the highs from 2011. A breakout over $40 and then $45 will be a major technical event.
In this daily Point and Figure chart of KBR, below, we can see a potential upside price target in the $49 area. Reaching this target will mean that we have broken out to new all-time highs.
In this weekly Point and Figure chart of KBR, below, we can see a tentative longer-term price target in the $54 area.
Bottom line strategy: Traders should look to buy a pullback below $35 and risk to $28. $49 and then $54 are our price targets for 2021. A price target of $65 might be seen in 2022 - the height of the pattern on the monthly chart (above) projected to the upside.
