During Thursday's Mad Money program Jim Cramer liked Kimberly-Clark Corp. (KMB) because they make items we need to be at home. Since I have been at home since March 7 I have used a lot of their products.
Let's check out the charts.
In the daily bar chart of KMB, below, we can see that prices have recouped most of their February-March decline. KMB is back above the rising 200-day moving average line and the bottoming 50-day moving average line.
The daily On-Balance-Volume (OBV) line has come off its low and signals a shift from aggressive selling to aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is back above the zero line in bullish territory.
In the weekly bar chart of KMB, below, the indicators lean toward the positive. Prices are above the bottoming 40-week moving average line. A new weekly high close for the move up is within "striking distance."
The weekly OBV is in a sideways trend but close to making a new high. The MACD oscillator is crossing to the upside and could generate both a cover shorts buy signal and an outright buy signal at the same time.
In this Point and Figure chart of KMB, below, we can see an upside price target of $159, which would be a new high. A trade at $149.43 will be a new high for the move up and refresh the uptrend.
Bottom-line strategy: With so many companies struggling and so many weak-looking charts it is uplifting to look at KMB. Approach from the long side at current levels or wait for a trade at $149.43 to go long.
