On Monday night's popular Mad Money show, the third "Executive Decision" segment was with Doug Peterson, president and CEO of S&P Global (SPGI) . Jim Cramer said that this is a great company that's become consistent under Peterson's transformation.
The company's not just a ratings agency anymore, it has a subscription business as well as an index business. Peterson explained that because of this approach, other segments can carry the company when another might be under performing. The company received the first 100% wholly-owned ratings agency license in China.
Let's look beyond the fundamentals.
In this daily bar chart of SPGI, below, we can see that prices made a high in July and a lower high in September before declining sharply in October. A V-like bottom is finally reached in late December followed by a strong recovery. SPGI is now firmly above the rising 50-day moving average line and above the bottoming 200-day moving average line.
The daily On-Balance-Volume (OBV) line turned up from late December and signals a shift to more aggressive buying.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory but the indicator is poised to cross to a take profits sell signal.
In this weekly bar chart of SPGI, below, we can see that prices are testing the bottoming 40-week moving average line.
The weekly OBV line has improved from the middle of December but is below its 2018 peak.
The weekly MACD oscillator crossed to a cover shorts buy signal last month.
In this Point and Figure chart of SPGI, below, we can see that a trade at $197.44 will be a double top breakout. A potential upside price target of $256 is shown but there is a "chunk" of overhead resistance to clear.
Bottom line strategy: SPGI is pointed up with a bullish Point and Figure price target but there is a layer of chart resistance from $195 to $215 that is likely to hamper any upside progress. If you decide to go long SPGI you will need to risk a close below $186.
