CNBC’s Jim Kramer said on Tuesday that there are three stocks that could be poised for a rally.
“The graphs, as Caroline Borodin interpreted them, indicate that TwitterAnd the Valero And the Occidental [Petroleum] It could have some upside here. I’m more careful on Twitter because it’s an arbitrage play, but the other two are getting my attention.”
To explain Boroden’s analysis, Cramer first examined Twitter’s daily chart:
He said the stock has made a pattern to reach higher highs and higher lows, which is a “typical sign of strength.”
Meanwhile, the main moving averages that Boroden is watching are looking bullish. The stock is trading above both the 200 day and 50 day simple moving averages. In addition, the 5-day exponential moving average is crossing the 13-day mark, according to Kramer.
“This is her favorite buy signal,” he said.
Kramer added that Boroden sees Twitter’s stock easily heading to $53.43 or even $54.87. He admitted that Elon Musk was chatting to Twitter about his deal for him Buying the company at $54.20 per share Stocks can be hurt.
“I think our upside is limited at this level, and if something goes wrong, great, the stock will drop through the mid-to-high $40 Boroden support levels, at which point you say you need to go down because the bullish theory is toast.”
For more analysis, see Kramer’s full explanation below.
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