The fast-paced Lightning Round segment of Mad Money is a viewer favorite. Tuesday night one caller asked Jim Cramer about Dycom Industries (DY) . "This one is terrific. I'm willing to buy right here," said Cramer.
Let's check out the charts of this company that provides program management, engineering, construction, maintenance and installation services for telecommunications providers.
In this daily bar chart of DY, below, we can see that the shares have made a significant rally from its March low. Prices are trading above the rising 50-day moving average line after a test in late November and early December. The slope of the 200-day moving average is also bullish.
The On-Balance-Volume (OBV) line has made a strong rise into late November and then it dips even though prices have gone onto new highs. The Moving Average Convergence Divergence (MACD) has been weakening since early September and now is only slightly above the zero line.
In this weekly bar chart of DY, below, we can see that the rally this year has broken a longer-term downtrend. Prices are above the rising 40-week moving average line.
The weekly OBV line is pointed up and the MACD oscillator has a bullish alignment above the zero line.
In this daily Point and Figure chart of DY, below, we can see that a trade at $79.84 will refresh the uptrend. A potential target of $106 is being projected.
Bottom-line strategy: Risking a close below $69, traders could go long DY at current levels looking for gains to the $106 area.