Linde's Charts Point to Higher Ground for Its Shares

Stop protection for the supplier of industrial and medical gases also should be raised.

Last week Jim Cramer gave a nod to Linde (LIN) , a supplier of industrial and medical gases. "Recent financial results at industrial gas suppliers demonstrate pricing strength amid inflationary pressures," Cramer said.

We last looked at Linde on Feb. 9 and wrote at that time, "LIN is ready to move to new highs, but a broad market decline could derail that for a short time. Keeping that in mind, traders could look to buy a dip to $250 and then risk below the 200-day moving average line, or around $230."

Let's check out the charts of LIN again.  

In this daily bar chart of LIN, below, we can see that prices made a correction in June and July but strengthened in August. LIN is trading above the rising 50-day moving average line. The slow-to-react 200-day moving average line has a positive slope. The On-Balance-Volume (OBV) line made a sharp decline from May into June but it has been recovering from late June and suggests that buyers of LIN have been more aggressive in recent weeks. The MACD oscillator is above the zero line but has narrowed sharply. 

 

In this weekly Japanese candlestick chart of LIN, below, we can see that prices have doubled over the past three years. Prices are trading above the rising 40-week moving average line. The two most recent candle patterns are possible hanging men patterns. A bearish candle pattern this week would be confirmation and would go toward a top reversal pattern. The MACD oscillator looks poised to cross to the upside for a fresh outright buy signal. 

 

In this daily Point and Figure chart of LIN, below, we can see that prices are in an uptrend with a $358 price target. 

 

In this weekly Point and Figure chart of LIN, below, we can see a $358 price target, just like the daily chart above.  

 

Bottom line strategy: Traders should be long LIN from earlier recommendations. Raise stop protection to $280 from $230. The $358 area is our price objective or target.

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