Keep Plugging Into Generac Holdings

Investors have enjoyed the ride with the generator maker.

During Monday's Mad Money program Jim Cramer dove into the solar industry recommending First Solar (FSLR) and Enphase Energy (ENPH) (see our analysis of FSLR and ENPH, here and here).

Cramer's third recommendation to viewers was generator maker Generac Holdings (GNRC) , which in addition to gas-powered generators, also makes solar and battery backup solutions to help homes and businesses weather storms and prolonged outages.

We looked at GNRC on July 1 and recommended "There looks like there is plenty more room on the upside. Start a long position here and use available weaknesses to round out your position. Risk to $370 for now. The round number of $500 is the next price target."

In the updated daily bar chart of GNRC, below, we can see that prices have continued to soar northward. GNRC remains in a strong uptrend above the rising 50-day moving average line and the rising 200-day moving average line.

The On-Balance-Volume (OBV) line has continued higher and has made a new high for the move up to confirm and support the price gains. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.

 

In the weekly Japanese candlestick chart of GNRC, below, we continue to see a bullish picture. Prices are in a longer-term uptrend above the rising 40-week moving average line. The line intersects just below $300 so I would not consider GNRC as extended or overbought compared to that indicator. In my opinion, $600 would be overbought.

 

The weekly OBV line has been strong the past three years and has made a new high to confirm the price gains. The MACD oscillator is bullish and pointed higher.

 

 

In this daily Point and Figure chart of GNRC, below, we can see that prices have reached and exceeded a target of $419. Further gains are possible.

 

 

In this weekly Point and Figure chart of GNRC, below, we can see a potential price target of $778.

 

 

Bottom-line strategy: Continue to enjoy the ride and hold longs. Raise sell stops to $405 for now. Our price targets now are $500 and yes, $778.

 

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