Charts show Twitter, Valero and Occidental could rise

Jim Cramer of CNBC said on Tuesday that there are three stocks that could go up.

The graphs, as interpreted by Carolyn Boroden, suggest that Twitter, Valero as well as west [Petroleum] there might be some benefit here. I’m more careful on Twitter because it’s an arbitrage game, but the other two get my attention,” he said.

To explain Boroden’s analysis, Cramer first looked at Twitter’s daily chart:

Stocks have formed a pattern of making higher highs and higher lows, which is “a textbook sign of strength,” he said.

At the same time, the key moving averages monitored by Boroden look bullish. The stock trades above both the 200-day and 50-day simple moving averages. Also, according to Cramer, the 5-day exponential moving average crosses the 13-day.

“This is her favorite buy signal,” he said.

Cramer added that Boroden thinks Twitter shares could easily rise to $53.43 or even $54.87. He acknowledged that Elon Musk’s dispute with Twitter over their deal to buy the company at $54.20 per share could hurt the stock.

“I think our upside potential is capped at that level and if anything goes wrong, wow, the stock will plummet through the mid to high $40 Boroden support levels, at which point, she said, you need to get bearish because the bullish thesis is toast,” he said.

For a more detailed analysis, see Cramer’s full explanation below.

Watch Jim Cramer Break Down New Chart Analysis by Caroline Boroden

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