In his Real Money column "Now There's a Bull Market in Anything Auto," Jim Cramer told readers how the auto industry is once again becoming a good neighborhood, as your car is proving to be one of the safest ways to travel in a world with masks and social distancing. Cramer said there are a number of ways to play the bull market in autos. In auto parts, he likes Axalta Coating Systems (AXTA) and Adient plc (ADNT) .
Let's check out the charts of these two stocks.
In the daily bar chart of AXTA, below, we can see that the shares were cut in half from February into the middle of March. AXTA has since recovered but is still below the congestion area from November to February in the $20-$31 area. Prices are in an uptrend above the rising 50-day moving average line but the slope of the 200-day moving average line remains negative.
The On-Balance-Volume (OBV) bottomed in late March and has made a new high for the move up this month. A rising OBV line is a positive clue telling us that buyers of AXTA are more aggressive than sellers.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but the two moving averages that make up this indicator are very close and could turn up or down in the days ahead.