During Monday's Lightning Round segment of Mad Money one caller quizzed Jim Cramer about Louisiana-Pacific Corp. (LPX) . "I want to stick with Louisiana Pacific," was Cramer's response.
Let's check out the charts and indicators of this lumber and building materials company.
In the daily bar chart of LPX, below, we can see that the shares made a strong rally into early May. Prices have been correcting lower in recent weeks and have declined below the now declining 50-day moving average line. Some chart support is visible in the $55-$50 area and the rising 200-day moving average line intersects around $45.
The On-Balance-Volume (OBV) line shows a bullish rise into April and then a slow erosion lower into June. The Moving Average Convergence Divergence (MACD) oscillator has moved below the zero line for an outright sell signal. We now need to watch for a narrowing of the two moving averages.