During Friday's Lightning Round segment of Mad Money one caller asked host Jim Cramer about Atkore, Inc. (ATKR) . "This is the kind of stock that works here," answered Cramer about the company that is a leading provider of electrical, safety and infrastructure solutions.
Let's check out the charts of ATKR and see if they "work."
In the daily bar chart of ATKR, below, we can see that the shares made a strong rally from November, soaring from a base around $20-$25 to a zenith around $90. ATKR has pulled back from early May and now trades below the declining 50-day moving average line. The slope of the 200-day line is positive and intersects around $55.
Trading volume has been steady and the On-Balance-Volume (OBV) line has moved sideways to slightly lower since early May telling us that traders have largely stayed with their long positions during this correction.
The 12-day price momentum study in the lower panel shows a low in May and a higher low in June as the pace of the decline has slowed. This is a bullish divergence and can foreshadow a rally in the weeks ahead.



