In his "Homework" segment of Thursday's Mad Money program, Jim Cramer followed up on a few stocks that stumped him during earlier shows. One name was Gladstone Land (LAND) , an agricultural REIT that Cramer said is very well run and in demand as food around the globe is disrupted by Russia's invasion of Ukraine.
Unfortunately, the stock is already up big, trading at 46 times earnings, which means investors need to wait for a sizable pullback.
Let's check out the charts for ourselves.
In this daily bar chart of LAND, below, we can see that prices have advanced the past 12 months. Prices are trading above the rising 50-day moving average line and above the bullish 200-day moving average line. Trading volume has increased since October as investors recognize that food supplies are tightening.
The On-Balance-Volume (OBV) line rose to a high by January and has drifted a little lower in recent months. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed towards a possible take profit crossover.
In this weekly Japanese candlestick chart of LAND, below, we see a positive-looking chart. Prices have rallied the past three years so the uptrend is not a new phenomenon. LAND is trading above the rising 40-week moving average line.
The weekly OBV line is bullish and so is the MACD oscillator.
In this daily Point and Figure chart of LAND, below, we can see an upside price target in the $55 area.
Bottom line strategy: Traders could look to buy LAND in the $36-$35 area risking to $31. The $55 area is our price objective.