During Tuesday's fast-paced Lightning Round of Mad Money, one caller asked Jim Cramer about Oneok, Inc. (OKE) . "I happen to like Oneok. I think you have a good one there," responded Cramer.
Let's check out the charts of OKE and see what the technicals look like.
In the daily bar chart of OKE, below, we can see that the shares rebounded from a new low for the move down in September. OKE turned upward above the 50-day moving average line and then above the 200-day line.
Trading volume has remained light the entire time and the On-Balance-Volume (OBV) line shows only a slight rise from late January. The Moving Average Convergence Divergence (MACD) oscillator has been weakening from the middle of December but could turn up or down as the two moving averages that make up the indicator are very close.
In the weekly Japanese candlestick chart of OKE, below, we see a mixed to almost bearish picture. Prices are trading above the rising 40-week moving average line but the small real bodies in recent weeks tell me that upward momentum is getting increasingly more difficult.
The weekly OBV line has made progress from the March pandemic low but the move higher is slowing down. The MACD oscillator has narrowed and is very close to a downside crossover.
In this daily Point and Figure chart of OKE, below, we can see a potential upside price target in the $59 area. A trade at or below $51.53 could weaken the picture.
In this weekly Point and Figure chart of OKE, below, we see the $76 area as a longer-term objective.
Bottom-line strategy: Beneath the surface the indicators are showing that OKE could weaken in the weeks ahead. Longer-term, we could renewed gains to the $76 area. Tread carefully and let OKE correct before entering the long side.
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