During Tuesday's Lightning Round of Mad Money one caller asked Jim Cramer about Manitowoc Inc. (MTW) . "I like this company," said Cramer referring to the maker of cranes and other heavy machinery.
Let's check out some up-to-date charts on MTW.
In the daily bar chart of MTW, below, we can see that the shares bottomed out in the $8-$7 area back in April to November. MTW has rallied to triple in the last five months. The slope of the 50-day moving average line is positive and so is the slope of the 200-day line.
Trading volume has been active since November and even heavier in March. The On-Balance-Volume (OBV) line has been rising the past 12 months but has leveled off this month suggesting a balance between aggressive buyers and aggressive sellers.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of MTW, below, we can see that prices have emerged from a base pattern. It is up for debate where the "neckline" of the base intersects -- it could be around $15 or it could be $18. This detail could be important if prices pullback to retest the top of base or the breakout -- do we pullback to $18? or $15?
The OBV line looks like it has made a near-term peak and the MACD oscillator is narrowing.
In this daily Point and Figure chart of MTW, below, we can see a potential upside price target in the $25 area.
In this weekly Point and Figure chart of MTW, below, we can see a $33 price target.
Bottom-line strategy: Traders could look to go long MTW on a pullback to $18 risking just below $15. Our upside price objective is $33.
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