For his "Executive Decision" segment on Mad Money Wednesday night, Jim Cramer spoke with Bryan Jordan, chairman and CEO of First Horizon National Corp. (FHN) , the regional bank that just posted a five-cents-a-share earnings beat with 5% loan growth.
Jordan said business remains strong within their footprint and the economy is growing in the Carolinas and into Tennessee. Businesses have strong balance sheets and are borrowing money to grow, he added.
Cramer said investors looking for a cheap growth stock need look no further than First Horizon. I'd like to look a little further at the charts of FHN.
In the daily bar chart of FHN, below, we can see a sideways basing pattern after the v-bottom low in late December. Prices have firmed up the past two months to rally above the 50-day moving average line and the 200-day line. Gains in the past two weeks have pushed FHN above its February high for a breakout.
The daily On-Balance-Volume (OBV) line has risen nicely from late December and tells us that buyers of FHN have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line at the end of June for an outright go long signal.
In this weekly bar chart of FHN, below, we can see that prices have closed above the declining 40-week moving average line. The weekly OBV line is making a new high for the move up and the MACD oscillator is close to crossing above the zero line for a buy signal.
In this long-term Point and Figure chart of FHN, below, we can see a potential upside price target of $20.50.
Bottom-line strategy: Traders can approach the long side of FHN at current levels risking to $14.50. The longer-term price target is $20.50.
