With a stock market that's been picking up steam for quite some time, finding reasonable places to invest is challenging. That's why Jim Cramer checked in recently on Mad Money with colleague Rob Moreno, publisher of RightViewTrading.com and a contributor to RealMoney.com.
Moreno has several picks he feels are ready to move higher, starting with United States Steel Corp. (X) . The steelmaker's stock has been trading sideways despite President Trump's imposition of steel tariffs on imports.
Moreno points out that U.S. Steel formed a triple top back in March, with the stock then plunging down to its 200-day moving average. That became a floor of support and the stock then bounced. But those old March highs became a new ceiling of resistance. In recent days U.S. Steel has been grinding against that ceiling and now Moreno thinks that the stock could soon be poised to break out to the upside. It's formed an ascending triangle pattern -- often those end with the stock in question shooting higher.
Moreno says the Moving Average Convergence Divergence, or MACD, indicator made a bullish crossover late last month. One cautionary note is that the Chaikin Money Flow, which measures the level of buying and selling pressure, remains negative.
Next up, Cramer and Moreno looked at the chart of Edwards Lifesciences (EW) , a medical device maker that came up with a non-invasive heart valve replacement. In the first quarter the stock exploded higher. Lately, though, Edwards has been trading sideways.
Moreno points out that while it's been consolidating, it's also made an inverse head-and-shoulders pattern, one of the most reliably bullish patterns in the book. Moreno thinks it could be headed to $166 before it runs out of steam. Meanwhile, the MACD indicator is higher, and the Chaikin Money flow crossed into positive territory at the end of April, in a sign that big institutions are buying the stock.
Cramer and Moreno next looked at Tapestry (TPR) , the apparel and accessories retailer formerly known as Coach. The stock got killed when the company reported a disappointing quarter a few weeks ago. But Moreno believes that Tapestry may have what it takes to really rebound here now that the stock has begun to bounce.
The key here is the accumulation/distribution line, another tool that helps tell whether big institutional investors are buying or selling. Moreno points out that the accumulation/distribution line has now jumped above its 21-period signal average, meaning the momentum is really improving. As Moreno sees it, if Tapestry can rally $2 from here, it will be sitting at the foot of the big gap higher from the last quarter.
Finally Cramer and Moreno looked at FedEx (FDX) . After moving sideways since the big early February breakdown, FedEx has finally broken out of its trading range. Based on the triangle pattern he sees here, Moreno believes that the stock can climb to new highs, and this move reflects the broader pickup in the transports.
Cramer and the AAP team recently trimmed a few shares of Constellation Brands (STZ) into strength at their highest sale price to date. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
Over on Real Money, Cramer says RH (RH) is still poised for a bigger move. Get more of his insights with a free trial subscription to Real Money.
Cramer says when you spend a whole day interviewing and listening to more than a dozen people, as he did at TheDeal's Corporate Governance conference, you can come back with a gazillion takeaways. Check out his Top Takeaways over on Real Money.
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