Housing is for real Jim Cramer recently wrote: I think Whirlpool (WHR) , and Stanley Black & Decker (SWK) can be bought.
Let's check out the charts of WHR.
In this daily bar chart of WHR, below, we can see that prices were cut in half from February to the middle of March but they quickly rallied back and even made new highs in late July. Prices are trading above the rising 50-day moving average line and well above the rising 200-day moving average line. A bullish golden cross of the 50-day and 200-day averages can be seen in the back half of July.
The On-Balance-Volume (OBV) line has moved up from March and tells us that buyers of WHR have been more aggressive. This confirms and supports the price gains.
The 12-day price momentum study shows a small bearish divergence from July into August as momentum has made lower highs while prices have increased. If this divergence is foreshadowing a pullback then I would consider it a buying opportunity.
In this weekly bar chart of WHR, below, we can see that prices have broken above the highs of 2020 and are testing the highs of late 2017 and early 2018.
WHR is above the rising 40-week moving average line and the weekly OBV line is rising.
The MACD oscillator is bullish and at a new three year high.
In this weekly close only Point and Figure chart of WHR, below, we can see a potential longer-term price target of $297. Rounding up to $300 seems like a good idea.
Bottom line strategy: With the 12-day momentum study slowing recently we might get a temporary pullback in price. Traders could use a dip closer to the $170 area to become a buyer or add to existing long positions. Risk a close below $160. The $300 area is our longer-term price objective.
