For his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer spoke with Hamid Moghadam, chairman and CEO of Prologis (PLD) , the logistics real estate company.
Moghadam said there are many smart people working very hard to solve the global supply-chain issues, but it's going to take time for the system to reset itself.
Modern supply chains have gotten very long thanks to globalization, Moghadam explained. The items you buy today can comprise thousands of individual components that are sourced from all over the globe.
When asked what the biggest challenge is for the industry, Moghadam responded: labor. He said there's simply not enough workers to unload ships, not enough truck drivers to move containers to warehouses and not enough warehouse workers to get those goods on their way to stores and consumers.
Let's check out PLD's charts and indicators.
In the daily Japanese candlestick chart of PLD, below, we can see an uptrend with short and relatively shallow corrections. The two most recent candles could be a bearish engulfing pattern pending bearish confirmation Thursday. This could be the start of a correction that traders should be prepared to purchase. Prices are trading above the rising 50-day and the rising 200-day moving averages.
The trading volume pattern has been steady. The On-Balance-Volume (OBV) line shows a rise but in the most recent upswing it has not (yet) made a new high to match the new price high this month. The Moving Average Convergence Divergence (MACD) oscillator is bullish and pointed higher.
In the weekly Japanese candlestick chart of PLD, below, we can see a longer-term advance. The shares are trading above the rising 40-week moving average line. The most recent candle pattern could finish the week as a doji, which could be a top reversal if we get confirmation next week.
The weekly OBV line and the weekly MACD oscillator are pointed up but may correct a bit more in the near-term.
In this daily Point and Figure chart of PLD, below, we can see a potential price target in the $190 area.
Bottom -ine strategy: Traders could go long PLD on a correction to the $140 area risking to $130. The $190 area is our upside price target after this anticipated pullback.
