During Tuesday's fast-paced Lightning Round segment of Mad Money, one caller asked Jim Cramer about American Tower (AMT) : "You should be buying Crown Castle (CCI) . That's the better one," replied Cramer.
Let's check out the charts of CCI.
In this daily bar chart of CCI, below, we can see that prices have made a strong rally in recent weeks and are back up retesting the July highs in the $175-$180 area. Trading volume has not expanded in recent weeks but the On-Balance-Volume (OBV) has climbed to new highs to confirm the price gains.
The rising 50-day moving average line is about to cross above the 200-day moving average line for a bullish golden cross buy signal. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of CCI, below, we can see a bullish picture. Prices are in an uptrend testing the prior highs. The slope of the 40-week moving average line has started to turn upwards again.
The OBV line is bullish and is knocking on making a new all-time high. The MACD oscillator has just crossed above the zero line for a new outright buy signal.
In this daily Point and Figure chart of CCI, below, we can see that prices have already made their upside breakout on this kind of chart with the trade at $176.97. An upside price target of $237 is now being indicated.
Bottom line strategy: The last time we reviewed the charts of CCI was back on July 7 and we recommended that longs should raise their stop protection to $165 from $155. Traders would have been stopped out in early August and avoided a long sideways to lower period of trading. With the recent new strength traders should get back on the long side of CCI at current levels. Risk to $168 now. The $237 area is our price target again.
(Crown Castle is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells CCI? Learn more now.)
