The fast-paced Lightning Round segment of Mad Money is a favorite part of the show according to viewers. Callers get a shot at asking Jim Cramer about companies that they are interested in. Thursday night one caller asked about Medifast Inc. (MED) . "I like this idea. People are going to want to stay in shape more after the pandemic," commented Cramer.
Medifast is a meal replacement program for weight loss. The company ships prepackaged meals and ready-to-eat snacks to your home that are designed to help you reduce your calorie intake.
Let's check out the charts.
In the daily bar chart of MED, below, we can see that prices have been in a downtrend the past 12 months. MED is trading around the declining 200-day moving average line but above the rising 50-day moving average line. Prices have doubled from their March low but we haven't broken above the January peak so technically we are still in a downtrend.
The On-Balance-Volume (OBV) line shows a decline into April but a bullish divergence when compared to the price action which made a lower low to create a bullish divergence.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line early this month for a buy signal but it has since narrowed and is close to a downside crossover and a take profits sell signal.