Crown Castle Is Set to make New Highs: How to Play the Stock

Jim Cramer and I are on the same page here.

During Thursday night's Lightning Round segment of Mad Money, one caller asked Jim Cramer about Crown Castle International Corp. (CCI) . "That chart is fabulous. Buy it," was Cramer's recommendation.

Let's check out the charts Monday morning of this real estate investment trust and provider of shared communications' infrastructure.

In the daily bar chart of CCI, below, we can see that the stock has quickly recouped the vast majority of its February-March losses and is now close to making new highs for the year. Prices are above the 50-day and 200-day moving average lines.

The trading volume surged in late February and March and suggests that we had capitulation-like turnover. The On-Balance-Volume (OBV) line is interesting in that while it has only been steady since the middle of March it also did not decline all that much from February. This suggests that investors largely held their positions.

The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory but the two moving averages that make up this indicator have begun to narrow.  

 

In the weekly bar chart of CCI, below, we can see a constructive picture. Prices are above the rising 40-week moving average line. The weekly OBV line is at a new high for the move up and is definitely more bullish than the daily line.

 

The MACD oscillator on this longer time frame has crossed to a fresh outright go long signal. 

 

 

In the daily Point and Figure chart of CCI, below, we can see that a trade at $168.38 is needed for an upside breakout. Longer term a potential price target of $223 is projected. 

 

 

 

Bottom-line strategy: Jim Cramer and I are on the same page when looking at the charts of CCI. Buy strength above $168.38.

 

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