In the fast-paced Lightning Round segment of Mad Money callers get the chance to ask Jim Cramer about stocks they are interested in. One caller Monday night asked Cramer about Bluebird Bio Inc. (BLUE) . "If you're willing to take the risk of a speculative stock, I'll bless it," said Cramer of the biotech company.
Let's check out the charts and indicators.
In the daily bar chart of BLUE, below, we can see that the shares suffered a significant decline in the first quarter of 2020. Prices made a low in March and a successful retest in early April before rallying to a high in early June. Since June the shares have been slowly declining until this November and December when prices showed some fresh bottoming action. BLUE has rallied above the declining 50-day moving average line. The 200-day moving average line has turned flat and BLUE could test and maybe break the 200-day line soon.
The On-Balance-Volume (OBV) declined from late June to early December telling us that sellers of BLUE have been more aggressive. The OBV has improved from early December but it still has a way to go to break the downtrend from June. The Moving Average Convergence Divergence (MACD) oscillator looks like it is ready to cross above the zerol line for a buy signal.