In Friday's Lightning Round segment of Mad Money one caller asked Jim Cramer about Nautilus (NLS) . "Don't be greedy, take some profits," Cramer responded. Let's check out the charts and indicators.
In the daily Japanese candlestick chart of NLS, below, we can see some signs of weakness. Trading volume declined from September into October even though prices moved to new highs. The candles show upper shadows above $26 and a top reversal pattern last week.
The On-Balance-Volume (OBV) line shows some weakness in recent days and the Moving Average Convergence Divergence (MACD) oscillator is close to a downside crossover and take profits sell signal.
In this daily Point and Figure chart of NLS, below, we can see that good support may not emerge until around the $17 area.
Bottom-line strategy: It is better to have a workout in the gym or at home as opposed to in the stock market. Avoid the long side of NLS for now but it may become attractive around the $17 area. We'll see.
