In the Lightning Round segment of Mad Money Wednesday night, Jim Cramer was bullish on Intuit (INTU) . Let's review the charts and indicators of the maker of TurboTax.
In the daily bar chart of INTU, below, we can see that prices rallied from late December to early September. INTU corrected lower into early November but has moved up nicely in the past two weeks. Prices tested and broke for a while the rising 200-day moving average line but INTU is now above the 200-day line and the bottoming 50-day moving average line.
The volume of trading this month looks like it has increased versus October and the On-Balance-Volume (OBV) line has risen too and is not far from making a new high. These are positive signs for INTU.
The Moving Average Convergence Divergence (MACD) oscillator has improved steadily this month and is close to crossing the zero line for an outright go long signal.
In the weekly bar chart of INTU, below, we can see that prices have more than doubled in the past three years. Prices are now back above the rising 40-week moving average line after a test of that line.
The OBV line has been steady since May and is not far from making a new high for the move up. The MACD oscillator has been above the zero for much of the past three years, which tells us that the trend has been strong. The oscillator is turning to the upside again and could soon generate a fresh outright go long signal.
In this Point and Figure chart of INTU, below, we can see a potential longer-term price target of $323.
Bottom-line strategy: Traders could try to buy INTU below $270 and risk below $255. Our upside price target over the next several months is $320.
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