For his "Executive Decision" segment during his Mad Money program Monday night, Jim Cramer again sat down with Chris Rondeau, CEO of Planet Fitness Inc. (PLNT) , a stock that's still up more than 50% for the year.
Rondeau said that Planet Fitness has delivered 47 consecutive quarters of positive same-store sales growth. The company has 12.1 million members, up from seven million three years ago. Planet Fitness has 1,600 locations now and Rondeau said they could have 4,000 before reaching saturation.
Let's check out the charts and indicators to see if we are getting a good cardio workout.
In this daily bar chart of PLNT, below, we can see a steady uptrend the past 12 months. Prices are now above the flat 50-day moving average line and above the rising/bullish 200-day moving average line.
The daily On-Balance-Volume (OBV) line has been climbing since February and tells us that buyers of FLNT have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this three-year weekly bar chart of FLNT, below, we can see a strong and impressive three-year rally. Prices have spent nearly all that time above the rising 40-week moving average line. The weekly OBV line was bullish and rising until July.
A new weekly high in the OBV line would help to confirm the recent highs in price. The weekly MACD oscillator is turning up again to a new buy signal.
In this Point and Figure chart of PLNT, below, we can see a downside price target of $44 but we can also see that a trade at $58 will be an upside breakout -- not all that far away from current levels.
Bottom-line strategy: PLNT has been in a strong uptrend and a large distribution pattern is lacking. I need to visit PLNT to lose some of those Thanksgiving pounds. Traders who are in shape and looking to go long should buy strength above $58 risking below $50.