During Tuesday's Lightning Round segment of "Mad Money" one caller asked host Jim Cramer about Lion Electric Company (LEV) .
"This is one of my favorites in this group," responded Cramer about this company that creates, designs and manufactures all-electric class 5 to class 8 commercial trucks and all-electric buses and minibuses for use in cities.
Let's charge up the charts for a look.
In this daily Japanese candlestick chart of LEV, below, we can see that prices have been weak since January. Prices are trading below the 50-day moving average line and the 200-day moving average line. The On-Balance-Volume (OBV) line shows a long decline which tells us that sellers of LEV have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of LEV, below, we see a weak picture. Prices have broken below some tentative support around $14 and the $14-$16 area could now become resistance. The OBV line is bearish and so is the MACD oscillator.
In this daily Point and Figure chart of LEV, below, we can see a potential downside price target in the $9 area.
Bottom line strategy: The fundamental story behind LEV may be bullish, but the charts and indicators do not reflect it just yet. Avoid the long side for now.
