Here's what Jim Cramer had to say about Olin Corp (OLN) that one caller offered up during the Mad Money "Lightning Round" Monday evening: Olin: "This complex is going higher. This thing is on fire. Basic chemicals are working," said Cramer about the manufacturer and distributor of chemical products, and ammunition.
Let's check out the charts and indicators.
In this daily bar chart of OLN, below, we can see that prices have made a strong rally from September. We see a bullish golden cross of the rising 50-day moving average line and the 200-day moving average line in October.
The On-Balance-Volume (OBV) line has been improving since February and foreshadowed the turn higher.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in September for a buy signal but now shows some profit-taking.
In this weekly bar chart of OLN, below, we can see that prices broke a longer-term downtrend. OLN is now trading above the rising 40-week moving average line.
The weekly OBV line shows improvement from August and the MACD oscillator is bullish.
In this Point and Figure chart of OLN, below, we used daily price data and we can see that prices have reached and exceeded a $20 price target.
In this second Point and Figure chart of OLN, below, we used weekly close only price data. Here the chart suggests we could see gains to the $46 area.
Bottom line strategy: The big picture for OLN looks bullish but in the near-term a correction back into the $20-$19 area is possible and should be considered a buying opportunity.