"This company makes a lot of money. I like this one," replied Jim Cramer to a caller's question about Trupanion (TRUP) during the Lightning Round segment of Mad Money Friday evening. This pet insurance company has made a big upside move this year.
Let's check and see what might come next.
In the daily bar chart of TRUP, below, we can see that the shares tripled from their base in the $30 area. Prices made a sharp pullback in late October and then rallied back to the area of the October high. A large outside day so far Monday suggests the stock could be making a double-top pattern. TRUP is above the rising 50-day moving average line and extended above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line shows a rise from March, which tells us that buyers of TRUP have been more aggressive. Moving Average Convergence Divergence (MACD) oscillator has made some rapid swings recently and is above the zero line for now.