Trimble, Inc. (TRMB) was mentioned during the "Lightning Round" of the Mad Money program Monday night. Responding to a caller, Jim Cramer said, "TRMB: This one is good. People think it's going down, but it doesn't." Let's look over the charts and indicators to see what he is talking about.
In the daily bar chart of TRMB, below, we can see that prices have made three big moves since July: a rally from $32 to $44, followed by a decline to $30, and then a rebound to $40, so far at least. A great trading vehicle if you were on the right side of those trends.
TRMB is now above the rising 50-day moving average line as well as the bullish 200-day line. The volume pattern does not show a clear pattern of expanding volume from late December, but fortunately the daily On-Balance-Volume (OBV) line has been climbing and is not far from making a new high for the move up.
The Moving Average Convergence Divergence (MACD) oscillator crossed to a cover-shorts buy signal in early January, and to an outright-buy signal a short time later. The MACD oscillator is still in a bullish mode.
In the weekly bar chart of TRMB, below, we see a mixed picture. Prices are above the rising 40-week moving average line, but the December low broke the earlier lows of 2018. The weekly OBV line not did follow prices to a new low and that is a bullish divergence and a positive. Prices are about $5 to $6 from a new high but the OBV line looks like it is much closer.
The weekly MACD oscillator signaled a cover shorts buy in January and is close to crossing the zero line for an outright buy signal.
In this Point and Figure chart of TRMB, below, we can see that a nearby price target of $43.18 is being projected. If prices fail to exceed this price target then we are likely to fail to make a new high.
Bottom-line strategy: The price of TRMB is pointed up for now, but that strength could evaporate at any time, in my opinion. Longs should raise stop protection to a close below $37.50.
