Roper Technologies, Inc. (ROP) is a diversified industrial company that produces engineered products for global niche markets. "I always liked this company and it does a fantastic job," commented Jim Cramer during the Lightning Round of Mad Money Friday night. Let's check out the charts and indicators to see if the charts match Jim's enthusiasm.
In the daily bar chart of ROP, below, we can see that prices have really soared since the end of December. but began to level off since May. ROP is trading above the rising 50-day moving average line and is well above the slower-to-react 200-day line. The daily On-Balance-Volume (OBV) line has been level the past four months suggesting that buyers and sellers of ROP have been more in balance after the bullish rise from October to the end of March.
The Moving Average Convergence Divergence (MACD) oscillator is crossing to the downside at a much lower high then the first crossover in early March. This is a bearish divergence and signals that the trend strength is significantly weaker now than earlier in the year.
In this weekly bar chart of ROP, below, we can see that prices have doubled in the past three years. ROP is above the rising 40-week moving average line with the widest spread above the line in the past three years.
The rising weekly OBV line confirms the price rise and the MACD oscillator is still in a bullish mode above the zero line.
In this Point and Figure chart of ROP, below, we can see a recent upside breakout and new longer-term potential upside price target of $459. A decline to $341.28 is needed to weaken this chart.
Bottom-line strategy: While we can find a lot of bullish clues and signals on these charts (above), the flat OBV line on the daily chart tells me to be cautious above new longs. Weakness below $360 gets me nervous and a close below $340 would turn me bearish.