Cree (CREE) - Get Report was upgraded by the quantitative service at TheStreet, so it became a "must look at stock" today for me. Let's check the charts and indicators to see if they are in line with this upgrade.
In this daily bar chart of CREE, below, we can see that prices have been pretty volatile over the past twelve months. Large range days, gaps and lots of reversals. The big picture is that prices have moved sideways in a wide range crossing above and below the 50-day and the 200-day moving averages several times.
Currently CREE is above the flat 200-day line and above the 50-day line which is just turning positive. The On-Balance-Volume (OBV) line has been rising since early November even when prices have declined! The OBV line just broke out to a new high for the move up, ahead of the price action. The Moving Average Convergence Divergence (MACD) oscillator is now above the zero line for an outright go long signal.
In this weekly bar chart of CREE, below, we can see a long sideways base pattern with a strong move above the 40-week moving average line. The weekly OBV line has been rising since last October and the weekly MACD oscillator is about to cross above the zero line for a weekly outright go long signal.
In this point and figure chart, below, we can see that prices broke out at $26.72 and there is a $32 price target.
Bottom line -- When you have a strong chart and a quantitative upgrade you want to pay attention. Aggressive traders could look to buy a dip in CREE risking a close below $25, looking for $32 on the upside.
Click here to sign up for Quant Ratings, where you can read our full report on Cree or more than 4,000 other stocks that our service rates in real time every market day. However, please note that our Quant Ratings service assesses stocks using a proprietary computer model that runs a variety of factors through quantitative and technical analysis. Ratings do not necessarily reflect the opinions of Jim Cramer or other columnists, who may use different criteria to grade stocks.
(This article originally appeared at 3:50 ET on Real Money, our premium site for active traders. Click here to get great columns like this from Bruce Kamich, Jim Cramer and other writers even earlier in the trading day.)
More of What's Trending on TheStreet:
- Hurricane-Relief Bill Passed by House Includes a Major Perk for Big Insurers
- Amazon's New Echoes Don't Address Alexa's Most Glaring Weakness
- The Ford $100,000 F-450: 'The Most Luxurious, Advanced Heavy-Duty Pickup Truck'
- How to Be as Charitable as Microsoft Billionaire Bill Gates
Employees of TheStreet.com are restricted from owning individual shares.