One caller during Tuesday's Lightning Round segment of "Mad Money" asked host Jim Cramer about Ingevity (NGVT) .
"This is the kind of chemical company that I like," Cramer replied.
Let's check out the charts and technical indicators.
In this daily bar chart of NGVT, below, we can see that prices have been rallying from a late September low. NGVT is now trading below the declining 50-day moving average line but just above the rising 200-day line.
Dips toward the 200-day line in July and August may turn out to be buying opportunities in hindsight. The On-Balance-Volume (OBV) line shows a bullish rise from late September to confirm the price gains. The OBV line shows a little "leveling off" in the past two months. The Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero-line lately telling us there is little in the way of "trend strength."
In this weekly Japanese candlestick chart of NGVT, below, we see a mixed picture. Prices are in an uptrend, but testing the rising 40-week moving average line. The weekly OBV line is overall positive. The MACD oscillator is pointed lower.
In this daily Point and Figure chart, below, we can see a downside price target in the $70 area.
In this weekly Point and Figure chart, below, we can also see a downside price target.
Bottom line strategy: Shares of NGVT are not actively traded, so you need to keep that in mind when buying or selling. Traders who understand this could go long NGVT at current levels risking two consecutive closes below $75.
