"This stock is doing well, and it's not done, " said Jim Cramer to one caller asking about Freshpet Inc. (FRPT) during the Lightning Round segment of Mad Money Wednesday night. Let's check out the charts and indicators of this maker of fresh pet food.
In the daily bar chart of FRPT, below, we can see that prices have been in a parabolic-like rise from early August. FRPT is above the rising 50-day moving average line and the bullish 200-day moving average line.
The daily On-Balance-Volume (OBV) line has been strong the past year and is at a new high for the move up to confirm and support the price gains. The Moving Average Convergence Divergence (MACD) oscillator turned bullish at the end of August and it remains bullish today.
In this weekly bar chart of FRPT, below, we can see a strong stock performance over the past three years. Prices are above the rising 40-week moving average line. The 40-week moving average line has been a great indicator of the trend and tests of the line have been a buying opportunity.
The OBV line shows an uptrend over the past three years. A bullish pattern. The MACD oscillator has been above the zero line for the past three years.
In this weekly Point and Figure chart of FRPT, below, we can see that prices have reached a long-term upside price target.
Bottom-line strategy: FRPT has made a very successful run the past three years. Further gains are possible but I suspect we will see a period of sideways price action before renewed strength. Be patient.
