"I've liked LKQ Corp (LKQ) for a long time," Jim Cramer told a caller during last Thursday's "Lightning Round". Let's check out the charts of LKQ, a provider of alternative and specialty parts to repair automobiles.
In this daily bar chart of LKQ, below, we can see that prices have trended higher the past 12 months. Prices are trading above the rising 50-day moving average line and the rising 200-day line. The On-Balance-Volume (OBV) line broke out to a new high in May to confirm the new price highs seen this year.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal. Stepping back from the chart I can see that the MACD oscillator has stayed above the zero line for much of the last year.
In this weekly Japanese candlestick chart of LKQ, below, we can see that prices tripled from their Mach 2020 low. Recently the candles have made small real bodies telling us that there is a balance between the bulls and the bears. LKQ is trading above its rising 40-week moving average line.
The weekly OBV line is bullish and confirms the price gains. The MACD oscillator is in a bullish alignment.
In this daily Point and Figure chart of LKQ, below, we can see that prices have met a price target in the $51 area.
In this weekly Point and Figure chart of LKQ, below, we can see an upside price target in the $71 area.
Bottom line strategy: In the short-term we might see LKQ trade sideways around $50 for the next few weeks but the trend is up and the uptrend should resume before long. Traders could probe the long side of LKQ risking to $45. The $71 area is our price target for now.
