Jim Cramer told his Mad Money viewers Monday night that investors can consider cyclicals such as Boeing (BA) , Honeywell (HON) , Caterpillar (CAT) and Eaton Corp. (ETN) .
Let's check out the charts and indicators of ETN.
In the daily bar chart of ETN, below, we can see that the shares have been in a strong uptrend the past 12 months. ETN is trading above the rising 50-day moving average line and above the rising 200-day moving average line. The daily On-Balance-Volume (OBV) line has also risen the past 12 months and tells us that buyers of ETN have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed significantly.
In the weekly Japanese candlestick chart of ETN, below, we can see that the stock made a large base pattern around $80 before the rally. Prices are firmly above the rising 40-week moving average line.
The weekly OBV line has been in a long-term uptrend and this supports and confirms the price gains. The MACD oscillator is in a bullish alignment.
In this daily Point and Figure chart of ETN, below, we can see that the stock is in an uptrend with a $213 price target.
In this weekly Point and Figure chart of ETN, below, we can see a price target in the $227 area.
Bottom-line strategy: The charts and indicators of ETN are strong and heading higher. Our price targets are $217 and $227. Traders going long around current levels should consider a $158 stop.
