That's why Facebook's weekly chart is so intriguing. Redler noted that the stock has formed the bullish cup and handle pattern, which would indicate a monster rally if it can get above $32.50 a share. Boroden's analysis was similar in nature, noting that the stock's next resistance is at $28.32, followed by $34, and then higher from there.
But Cramer said he's a fundamentalist, which means he doesn't like waiting for stocks to go higher before buying them. He said Facebook has conquered mobile, which was its big stumbling block after its botched IPO. That's why he'd use and weakness to be buying Facebook, then riding it higher to its resistance levels and beyond.
Flying US Airways
When the facts change, Cramer's always willing to change his mind, even if it means recommending an airline. Cramer said his mantra for decades has been "never, ever own an airline," but with a string of mergers and consolidation in the industry, it's now time to recommend US Airways (LCC).
Cramer said that after years of cut-throat competition that made the airlines simply un-investable, a string of mergers has taken away much of that competition, which may be bad news for travelers but is great news for stockholders. There's a new world order, said Cramer, with the top four airlines now set to control 80% of all U.S. flights.That's why US Airways, which is set to merge with American Airlines when that company emerges from bankruptcy later this year, is worth getting in now, ahead of the deal. Once closed, the new American will be the largest airline in the world, said Cramer, and it will be number one on the East Coast, number one in middle America and number three on the West Coast. With an estimated $1 billion in cost savings expected from the deal, Cramer said there's a lot to like about this combined behemoth.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV