In the popular Lightning Round segment of Mad Money lucky callers get to ask Jim Cramer about stocks they are interested in. Wednesday night one caller asked about GW Pharmaceuticals plc (GWPH) . "I like it a lot. It's come down a lot, though," commented Cramer.
Let's check out the charts and indicators of GWPH. We looked at GWPH on Sept. 15 and wrote that, "The daily chart of GWPH needs more development and stronger signs of aggressive buying to get me to recommend the long side. Aggressive traders who find the company attractive will need to risk a close below $90."
In the daily bar chart of GWPH, below, we can see that prices have still not completed a bottom formation but there have been some positive developments. Prices are still in a downtrend but the 12-day price momentum study in the bottom panel shows a higher momentum low from August to October even though prices made a lower low. This divergence tells us that the pace of the decline has slowed and that can foreshadow better prices ahead.
The On-Balance-Volume (OBV) line has continued lower into October telling us that sellers of GWPH are still more aggressive. The 50-day and 200-day moving averages have negative slopes.
In the weekly bar chart of GWPH, below, we can see that the bear case is still intact. Prices are pointed down and below the declining 40-week moving average line.
The weekly OBV line is bearish and so is the MACD oscillator.
In this daily Point and Figure chart of GWPH, below, we can see that prices are in a downtrend with a possible $84 price target.