One of the stocks that callers asked Jim Cramer about during the Mad Money Lightning Round Thursday evening was Stem, Inc. (STEM) ."Stem is good. I'm not backing away from this one," said Cramer referring to the company that delivers and operates smart battery storage solutions.
Let's check out the charts and indicators of STEM.
In the daily bar chart of STEM, below, we can see the shares rallied after this company went public. The rally stalled in the middle of February and then declined to the middle of May. STEM is now trading above the 20-day and 50-day moving average lines.
The daily On-Balance-Volume (OBV) line has been flat the past three months, ignoring the price decline. The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal in May and could cross above the zero line this month for an outright buy signal.
This daily Point and Figure chart of STEM, below, is projecting a possible upside target of $47.
Bottom-line strategy: Traders comfortable with buying new issues could go long STEM on a dip toward $25 with a stop loss order at $19. The $47 area is our price target for now.