Look to Go Long Air Products and Chemicals on a Pullback

Let's review the charts and indicators.

During earnings season Jim Cramer typically devotes part of his Mad Money program on Friday to outline some key companies that are scheduled to report earnings. Cramer was bullish on this Wednesday's earnings from Air Products and Chemicals (APD) .

Let's check out the charts and indicators.

In this daily bar chart of APD, below, we can see that prices have rallied sharply so far this month. Prices have broken out over the September highs today. ADP is trading above the rising 50-day moving average line and the rising 200-day moving average line.

The On-Balance-Volume (OBV) line shows the start of a fresh uptrend from late October telling us that buyers of APD have become aggressive again.

The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside from below the zero line for a cover shorts buy signal. An outright buy signal is due very soon.

 

In this weekly bar chart of APD, below, we see a mostly constructive picture. Prices are in an uptrend above the rising 40-week moving average line.

 

The weekly OBV line is positive and rising slowly since August.

 

The weekly MACD oscillator crossed to the downside for a take profits sell signal in October but could reverse to the upside this month. 

 

 

In this Point and Figure chart of APD, below, we can see an upside price target in the $433 area. 

 

 

Bottom line strategy: I have no idea of what APD is going to report for their quarterly numbers nor how much traders have discounted them. However, I would look to buy a pullback to the breakout level around $310 and then risk a close below $289. The round number of $400 would be our price target. 

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