Yeti Holdings Inc. (YETI) came up during the fast-paced Lightning Round of Mad Money Monday night. "Yeti is a winner and I'm sticking with it," said Mad Money host Jim Cramer.
We last looked at YETI in late November, when we wrote, "If you understand the company and you are comfortable with risk, you could approach the long side of YETI around $17.25, if available." Prices fell below $13 in December, so I would not be surprised if longs took a loss and moved on. Let's see if the charts are on a stronger footing now.
In this daily bar chart of YETI, below, we can see a little more than three months of price action. Using a 20-day and a 50-day moving average combination (instead of 50-day and 200-days), we can see that prices are above the rising 20-day average line and the flat 50-day line. The trading volume has been unremarkable, but the daily On-Balance-Volume (OBV) line does show a rise from late December and the Moving Average Convergence Divergence (MACD) is above the zero line and looks like it is turning higher.
In this first Point and Figure chart of YETI, below, we can see that a rally to $18.50 will be a small upside breakout while a decline below $16.50 will be negative.
In this second Point and Figure chart, below, we can see the price action arranged differently. Here a trade at $18.49 will be an upside breakout. A decline to $17.25 will be bearish.
Bottom-line strategy: With more trading history than back in November, it still looks like YETI is poised to move higher. Experienced traders can approach the long side of YETI. Risk below $16.50. No price targets yet.
