The stock market is back in rally mode, and with the Super Bowl just a few days away, Jim Cramer told his Mad Money viewers Thursday evening that it's time to nominate his starting lineup of stocks that are likely to score a touchdown for your portfolio.
If you're looking for an unbeatable team of stocks, you can't do better than the Mad Money starting lineup. Honeywell International Inc. (HON) , the best industrial technology company money can buy.
Let's check out the charts.
In the daily bar chart of HON, below, we can see that the shares made a peak in December and have drifted lower. Prices are now trading below the declining 50-day moving average line. The 200-day moving average line intersects around $170.
The On-Balance-Volume (OBV) line has "rolled over" the past three months. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory but it is poised for a cover shorts buy signal.
In the weekly bar chart of HON, below, we can see how the indicators have weakened in recent weeks. Prices are still above the rising 40-week moving average line.
The weekly OBV line is pointed down now and tells us that sellers have become more aggressive. The MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of HON, below, we can see a projected downside price target of around $180 or so.
In this weekly Point and Figure chart we see a price target of $227.
Bottom line strategy: HON has rolled over the past three months. Our daily Point and Figure chart has a downside price target and a number of indicators have weakened. Traders should keep their stop loss orders at $194. A pullback to the $180-$170 area is likely.