During the Lightning Round segment of Mad Money Thursday night one caller asked Jim Cramer about Romeo Power (RMO) . "I think this one has come down a lot and I think it's attractive," said Cramer of the company that produces energy-dense, commercially available lithium-ion battery packs.
Let's check out a couple of charts.
In this daily bar chart of RMO, below, we can see traders paid little attention to the stock until late November. Prices suddenly "took off" from $10 to almost $39 is a matter of a couple of weeks. RMO has corrected down to the $20-$18 area and looks poised for at least a bounce to the upside.
Trading volume was heavy on the decline suggesting that some buyers may have been selling on the way down either taking profits or taking losses. The On-Balance-Volume (OBV) line declined with the price action but now looks like it is stabilizing and new buyers are coming in.
The Moving Average Convergence Divergence (MACD) oscillator is in a corrective mode but has begun to narrow towards a potentially new buy signal.