During the fast-paced Lightning Round segment of Mad Money Friday night one caller asked Jim Cramer about MasTec Inc. (MTZ) . "We have a lot of infrastructure needs. This is a good one," Cramer responded.
Let's check out the charts of this electric power transmission system builder.
In the daily bar chart of MTZ, below, we can see that the shares have tripled since their March low. There is a bullish golden cross in early October as the 50-day moving average line crossed above the 200-day moving average line. Both lines have positive slopes.
The On-Balance-Volume (OBV) line shows a nice and steady rise from March telling us that buyers of MTZ have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but curving downward to a take profits sell signal.
In the weekly Japanese candlestick chart of MTZ, below, we can see that prices have rallied back toward the high set in the fourth quarter of 2019. Prices appear to be encountering some resistance and we could be seeing a dark cloud cover formation. Bearish confirmation is still needed. The 40-week moving average line is rising.
The weekly OBV line is bullish and the MACD oscillator is also bullish.
In this Point and Figure chart of MTZ, below, we used daily price data and the chart has reached a $66 price target.
In this weekly Point and Figure chart of MTZ, below, we can see a nearby price target of $71. Not new highs.
Bottom-line strategy: MTZ is stalling just below its late 2019 high. This could mean that prices pull back toward support in the $55 area before another upside attempt is seen.
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