In his "No Huddle Offense" segment of Mad Money Thursday night, Jim Cramer said there's a sea change underway when it comes to the environment. Money managers are increasingly pressuring companies to go green.
Case in point: Elliott Management taking a stake in Evergy Inc. (EVRG) and telling the company they should invest in more renewable energy. Activist investors love stock buybacks, Cramer said, so for Elliott to propose the opposite is telling.
Let's check and see what the charts are telling us.
In the daily bar chart of EVRG, below, we can see that prices have climbed higher from lows made in late February/early March. Prices are above the rising 50-day moving average line and above the rising 200-day line.
The daily On-Balance-Volume (OBV) line has moved up in recent months to confirm the price strength. The Moving Average Convergence Divergence (MACD) oscillator is nicely above the zero line in bullish territory but it has crossed to a take profits sell signal.
In the weekly bar chart of EVRG, below. we can see a positive picture. Prices have been rising since early 2018 and EVRG is above the rising 40-week moving average line.
The trading volume has been increasing since the middle of 2019 and the weekly OBV line turned upward in late 2018. The MACD oscillator crossed to the upside in January for a fresh outright go long signal.
In this daily Point and Figure chart of EVRG, below, we can see a potential upside price target around $91.
Bottom-line strategy: There are a lot of ways to make "green" and a lot of ways of being more green. Going long EVRG in the $72-$70 area and risking a close below $67 looks like a way to make some "green."