The Lightning Round segment of Mad Money is a viewer favorite. One caller Tuesday night asked Jim Cramer about NCR Corp. (NCR) : "It's making a comeback. I think there's a lot of value there," said Cramer.
Let's check out the charts and indicators.
In this daily bar chart of NCR, below, we can see that prices have formed what looks like an ascending triangle the past four months. Prices have been making equal highs around $39 and higher lows from December. Trading volume has decreased while the formation has developed and that is typical - as the high/low trading range gets tighter there is less opportunity for profit so active traders go elsewhere.
The On-Balance-Volume (OBV) line is neutral. The slopes of both the 50-day and 200-day averages are positive. The Moving Average Convergence Divergence (MACD) oscillator is only slightly above the zero line.
In this weekly bar chart of NCR, below, we went back five years to get some extra perspective. Prices are in an uptrend above the rising 40-week moving average line.
The weekly OBV line shows some improvement from June and the MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of NCR, below, we can see a potential upside price target in the $41 area. A rally to $41 would be a breakout to a new high.
Bottom line strategy: The charts of NCR are looking positive. Aggressive traders could go long on strength above $39 risking to $34.
