Montrose Environmental Could Weaken in the Near Term

The shares rallied into early April and then a shift has been taking place.
Stocks quotes in this article: MEG

During Tuesday's Lightning Round segment of Mad Money one caller questioned Jim Cramer about Montrose Environmental Group  (MEG) . "This is a little speculative name but I like the business," replied Cramer. 

Let's check out the charts of MEG. 

In the daily Japanese candlestick chart of MEG, below, we can see the entire trading history of this stock. The shares rallied into early April and then a shift has been taking place. Prices just closed below the still rising 50-day moving average line. The slower-to-react 200-day line is bullish and intersects around $36.

The On-Balance-Volume (OBV) line has been rolling over from early April as traders have been shifting from aggressive buyers to aggressive sellers. The Moving Average Convergence Divergence (MACD) oscillator turned down in the middle of April and is now close to crossing below the zero line for a sell signal. 

 
In this daily Point and Figure chart of MEG, below, we can see that the software is projecting the $36 area as a potential downside price target. 
 
 
 
 
Bottom-line strategy: With limited price history on MEG I would not recommend the long side just yet.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Technology | Industrial Goods | Mad Money

More from Stocks

It's Feast or Famine in This Sloppy Market

James "Rev Shark" DePorre

We're unlikely to see anything shake off this action during the dog days of summer.

Jim Cramer: Let's Get the Real Deal on the Health of the Economy

Jim Cramer

Is the truth in the jobs report or GM's earnings? Or is it in the cruise lines or the real estate firms? Let me show you the 'REIT' way to look at it.

Why I'm Psyched About Atai Life Sciences, Even With a Broken Chart

Timothy Collins

The psychedelics treatment area won't be a zero-sum game.

The9 Limited Has Broadened Its China-Centric Risk

Timothy Collins

I'm considering an add Friday based on what I see on the weekly chart.

Sofas Vs. Cyber Safety: Which Has Better Dividend Potential?

Chris Versace

Here we look at furniture company Ethan Allen, which benefited from the pandemic, and cybersecurity name McAfee, which could profit from recent big hack attacks.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight