During Monday's Mad Money program callers got a chance to quiz host Jim Cramer about stocks they were interested in. One caller asked Cramer about American Superconductor (AMSC) . "This is speculative but this one could work if speculative stocks keep working," responded Cramer.
Let's check out the charts of this energy technology company specializing in the design and manufacture of power systems and superconducting wire.
In the daily bar chart of AMSC, below, we can see that the shares emerged from a small base around $6 and soared to $30+ or a five-fold mark-up for early buyers. Prices have made a choppy pattern since late December with rallies and pullbacks. AMSC is trading modestly above the rising 50-day moving average line and above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line is showing some weakness from early January suggesting that sellers are now the more aggressive traders of AMSC. The 12-day price momentum study shows lower highs in January telling us that the pace of the advance is slowing and this is a bearish divergence.