Jim Cramer told his Mad Money viewers Friday night that this week's earnings end on Friday with Newell Brands (NWL) , a stock Cramer said is finally making a meaningful comeback. We have not reviewed the charts of NWL since November 4, 2019, so a fresh look at this maker of consumer goods seems to be in order.
In this daily bar chart of NWL, below, we can see that prices made a low in March and a successful retest in May. NWL is trading above the rising 50-day moving average line and above the rising 200-day line. The On-Balance-Volume (OBV) line has been rising since June with some "leveling off" in recent days.
The 12-day price momentum study shows weakening momentum from January into February even though prices have made higher highs. This is a bearish divergence.
In this weekly Japanese candlestick chart of NWL, below, we can see a large saucer bottom formation. Prices are trading above the rising 40-week moving average line. The OBV line has been bullish since the middle of 2019 and tells us that there has been significant accumulation (buying).
The 12-week price momentum study is not showing any bearish divergences yet.
In this Point and Figure chart of NWL, below, we used daily price data. A potential price target in the $37 area is suggested.
Bottom line strategy: You have to be impressed with the base pattern on the weekly chart. Buyers should be patient and look to buy a pullback to the $24 area risking below $22.
