In Thursday's fast-paced Lightning Round of Jim Cramer's Mad Money program he responded to one caller about Ball Corp. (BLL) : "This stock is a huge win."
Let's check the charts of BLL to see if there is still more upside, or whether we should nail down some profits.
In the daily bar chart of BLL, below, we can see the company's impressive rise the past twelve months. There was a relatively minor dip/pullback in December to the rising 200-day moving average line. With hindsight, this correction was a buying opportunity. BLL has spent nearly all of the past year above the rising 50-day average and the bullish 200-day line.
The volume pattern looks like it has declined from February, but the On-Balance-Volume (OBV) line shows a steady rise signaling more aggressive buying.
In the bottom panel of this chart is the 12-day price momentum study. Momentum is showing equal highs in May and June so far, while prices made higher highs, which is a modest bearish divergence. With no other warning flags on this chart I am not going to hit the panic button.
In the weekly bar chart of BLL, below, we can see that prices traded sideways for about two years before breaking out on the upside. BLL is above the rising 40-week moving average line.
The weekly OBV shows an uptrend from June of last year but it has recently stalled. The 12-week momentum study shows that momentum has weakened since March.
In this long-term point and figure chart of BLL, below, we can see prices have made a huge rally from the lows in 2008. There is a nearby price target just slightly above the market.
Bottom-line strategy: Prices are up tenfold from their 2008 lows. Investors have plenty of profits to book, and with prices very close to a long-term point and figure target, I would book some profits. This is not a bearish call, but it makes a lot of sense to me.
