Iridium Communications Finally Makes an Upside Breakout

During the Lightning Round segment of Mad Money Wednesday evening one caller asked Jim Cramer about Iridium Communications Inc. (IRDM) : "I like this one very much. I like the story," replied Cramer.

Let's check out the latest charts of this mobile satellite communications company.

In the daily bar chart of IRDM, below, we can see how rallies into the $27-$28 area have been rejected. Prices pulled back to the $21-$20 area twice but since the October low the price movement is different.

Now we can see higher lows in December and January. Prices are above the rising 50-day moving average line and above the still declining 200-day line.

IRDM just pushed up to a new high with the On-Balance-Volume (OBV) line turning up and the Moving Average Convergence Divergence (MACD) oscillator is also turning positive.  

In the weekly bar chart of IRDM, below, we can see the long sideways consolidation pattern. Prices are up at the top of the range.

The weekly OBV line is at a new high and the MACD oscillator is in a bullish mode. 

In this daily Point and Figure chart of IRDM, below, we can see the recent upside breakout and the potential $34 price target. 

Bottom-line strategy: IRDM has finally made an upside breakout. Go long or add to longs. Our first price target is $34.

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