Jim Cramer talked about a number of retailers in his Mad Money program Wednesday night. One of these was Yeti Holdings (YETI) , the camping equipment maker that came public in October. Unfortunately YETI saw its shares plunge to $12.41 at their lows in December. Cramer said he's still a believer in Yeti and shares are a steal at just 15 times earnings given the company's growth rate. We do not have a lot of chart history to work with but let's see what we can find.
In this daily bar chart of YETI, below, we can see basically a sideways trading range since October. With less price history to work with I shortened the moving averages to 20-days and 50-days. Currently YETI is trading above the rising 20-day and 50-day averages.
The daily On-Balance-Volume (OBV) line shows a decline from late November to the December nadir. From the December low the OBV line has turned up again telling us that buyers are now more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line recently for an outright go long signal.
In this Point and Figure chart of YETI, below, we can see an upside price target of $23 which would be a new high.
Bottom line strategy: If you are comfortable buying a relatively new issue, probe the long side here and risk below $15 looking for a rally to the low $20's in the next few months.
