During Monday night's Mad Money program one caller during the Lightning Round asked Jim Cramer about MSA Safety (MSA) : "I can't believe someone hasn't bought this company. They make a great product." The Pennsylvania-based company makes a number of sophisticated safety products that help protect workers in hazardous conditions.
Let's check out the charts of MSA, which I hope are as safe as their products.
In the daily bar chart of MSA, below, we can see that prices made a consolidation pattern or base pattern before starting a new uptrend in late August/early September. Prices are above the rising 50-day moving average line and the bullish 200-day moving average line.
The daily On-Balance-Volume (OBV) line was stable from June through September and then it began a bullish rise telling us that buyers of MSA had become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since early September and looks like it is turning upward again to a fresh go long signal.
In this weekly bar chart of MSA, below, we can see that prices have doubled in the past three years. Prices are above the rising 40-week moving average line.
The OBV line is bullish and so is the MACD oscillator on this longer time frame.
In this Point and Figure chart of MSA, below, we can see a potential price target of $163.
Bottom-line strategy: Seasoned traders could go long MSA at current levels if they risk a close below $134. The $163 area is our price target.