The Lightning Round segment of Mad Money is a viewer favorite. Callers get a chance to ask about stocks they are interested in and the rapid fire format keeps you listening closely. One caller Tuesday night asked Jim Cramer about Leidos Holdings Inc. (LDOS) : "This one is not done going higher, even though it's had a big move," said Cramer.
Let's check out the charts of this defense and information technology research company.
In the daily bar chart of LDOS, below, we can see that prices have nearly doubled in the past 12 months. Pretty dramatic gains. Prices are above the rising 50-day moving average line and above the rising 200-day moving average line.
It does not look like there has been much trading in the stock but the daily On-Balance-Volume (OBV) line shows a clear rise the past year and that helps to support and confirm the rally. The Moving Average Convergence Divergence (MACD) oscillator has stayed above the zero line for the entire year except for a dip in October. The MACD is currently in a new buy signal since early February.
In the weekly bar chart of LDOS, below, we can see that prices made a long consolidation pattern from the middle of 2017 to the end of 2018. Prices have more than doubled from their nadir around $50 and are close to making a triple. The 40-week moving average line is in a strong move to the upside and the weekly OBV line shows an equally strong rise and bullish story.
The MACD oscillator is at a new high for the move up from the zero line -- also very bullish.
In this first Point and Figure chart of LDOS, below, we used weekly close-only data, which shows that the stock has reached its price target of $121.
In this second Point and Figure chart of LDOS, below, we used a bigger reversal amount and generated a potential price target in the $225 area.
Bottom-line strategy: With strong charts and indicators and no signs of distribution (selling) we look for LDOS to soar still higher in the weeks ahead. The $200-$225 area is our next technical price objective. Longs should risk a close below $110 for now.
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