The stock of Pilgrim Pride Corp. (PPC) came up in Jim Cramer's fast-paced 'Lightning Round' of his Mad Money program Friday night. Cramer said "I like this one more than Tyson Foods (TSN) . I'll go with it." Okay. Let's check out the charts.
In this daily bar chart of PPC, below, we can see a decline to a late December low but a sideways trend can also be seen from July. The 50-day moving average line has been flat from late September and the 200-day moving average line has begun to flatten out and bottom.
PPC is ready to break above the November high to break out of the sideways trend.
The daily On-Balance-Volume (OBV) line has been moving sideways since August and did not make a new low with prices in December for a bullish divergence.
The Moving Average Convergence Divergence (MACD) oscillator crossed the zero line in January for an outright go long signal.
In this weekly bar chart of PPC, below, we can see that prices have rallied above the declining 40-week moving average line.
The weekly OBV line shows a stable pattern from August but a rising pattern would be stronger.
The MACD oscillator has crossed to the upside and it is not far below the zero line now.
In this Point and Figure chart of PPC, below, we can see a breakout at $20.22 but the software has not (yet) bumped up the price target.
Bottom line strategy: PPC longs should look for a rally to around $25 to book some profits.