Thursday night on Jim Cramer's Mad Money program he discussed the area of 5G. The last company mentioned was SBA Communications Corp. (SBAC) , which was not a favorite of Cramer's. He said the company has the weakest balance sheet of the group and barely mentioned 5G on its conference call.
Let's check on the charts and indicators to see what they are up to.
In this daily bar chart of SBAC, below, we can see that after a sideways period of trading last year, SBAC made a low in October and turned up in a pretty strong uptrend from near $145 to recently touched $215.
Prices are above the rising 50-day moving average line after a recent successful test of the indicator. The rising 200-day moving average line is below the price action, maybe too far below.
The volume histogram does not show a pattern of increasing volume but the daily On-Balance-Volume (OBV) line has been in an uptrend signaling more aggressive buying.
The daily Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for most of the time since November.
In this weekly bar chart of SBAC, below, we can see a mixed picture. Prices have doubled in the past three years and SBAC is above the rising 40-week moving average line. Volume has not expanded or increased over the past three years.
The weekly OBV line recently made a new high for the move up like prices have done but this is not a strong confirmation of the rally.
The weekly MACD oscillator is well above the zero line in bullish territory but the two moving averages that make up this indicator have been narrowing towards a possible crossover and potential take profits sell signal.
In this Point and Figure chart of SBAC, below, we can see a potential upside price target of $241. A decline to $197.44 would likely weaken the chart.
Bottom line strategy: SBAC is clearly in an uptrend but we are likely to see prices trade sideways for a while before its next sustained move. Aggressive traders could go long on minor weakness risking a close below $200.
More risk averse traders could wait for a close above $215 before going long risking below $205. The $240-$245 area is the potential price target.