During Friday's Mad Money program Jim Cramer told viewers his game plan for several stocks this week. On Tuesday, Cramer said he will be focused on the retailer, Dick's Sporting Goods (DKS) , which is poised to rally as team and youth sports return after a year-long hiatus. The company is scheduled to report its quarterly numbers before the opening Tuesday.
Let's check out the charts.
In the daily bar chart of DKS, below, we can see that the shares have made a significant recovery from their March 2020 lows. Prices are close to making a new high for the move up after a very recent test of the rising 50-day moving average line.
The trading volume has been shrinking since November and that is not a positive development. The On-Balance-Volume (OBV) has been weakening since early February and suggests that traders have gone from aggressive buyers to aggressive sellers.
The Moving Average Convergence Divergence (MACD) oscillator turned lower in early February for a take profit sell signal. Recently the MACD oscillator has begun to narrow. Maybe the earnings report is the spark to turn this indicator bullish.