For his final "Executive Decision" segment of Wednesday's Mad Money program, Jim Cramer checked in with Blake Moret, chairman and CEO of Rockwell Automation (ROK) , hot off the company's annual investor day.
Rockwell is forecasting 14% to 17% organic growth next year.
Moret said the power of Rockwell Automation is not in any one machine or process, but rather how all of its machines and software work together to increase output, precision and overall quality.
Rockwell is about a lot more than just robots and hardware. Moret explained that its cloud-native software, services, cybersecurity and consulting services also add a lot of value for customers. In a tight labor market, Rockwell provides hands-on training services as well, ensuring that customers will have the best workers for the job.
Let's check out the charts of ROK again. Our last review of ROK was back on July 29 where we wrote that "Traders who are long ROK should hold with a $279 stop. Add to longs or initiate longs above $303. The $346 area is our first price target."
Prices got to our $346 area price target so let's see what is next.
In this updated daily bar chart of ROK, below, we can see that prices gapped higher earlier this month followed by a normal-looking correction. ROK is still above the rising 50-day moving average line as well as the positively sloped 200-day line.
The On-Balance-Volume (OBV) line has been steady the past three months. The Moving Average Convergence Divergence (MACD) oscillator is bullish but shows some recent narrowing as prices corrected the past week.
In this weekly Japanese candlestick chart of ROK, below, we see a bullish picture. Prices are in a longer-term uptrend above the rising 40-week moving average line. The weekly OBV line has been strong for at least two years. The MACD oscillator just crossed to the upside for a new outright buy signal.
In this daily Point and Figure chart of ROK, below, we can see a new upside price target in the $411 area.
Bottom line strategy: Traders still long ROK should raise stops to $310. Traders who are flat could go long ROK at current levels risking to $310. The $411 area is our next price objective.
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