Mad Money

Cramer: Post earnings, 3 stocks with more upside

With so many earnings squarely in the rear view mirror, Cramer thinks now is a good time to look at companies that have rallied post quarter, and then attempt to determine which could have more upside.

Cramer is only giving his attentions to those companies, which have already reported, in an attempt to limit risk. That is, because are threatening stocks broadly, Cramer wants to avoid companies that present earnings risk too.

"Therefore, I'm only interested in companies that have shown us their results."

And although Jim Cramer is a fundamental investor, he often turns to technical analysis in his quest for find new stock ideas. Following is technical analysis from Dan Fitzpatrick, one of Cramer's colleagues at RealMoney.com, involving 3 stocks that have already rallied after earnings, but could still go higher.




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Kinder Morgan Energy Partners

Looking at the daily chart, Fitzpatrick says that although Kinder Morgan peaked in April of last year and then spent the next twelve months trending lower, it looks as if the stock bottomed in March.

Since that time, the stock has struggled with its 200-day moving average, before ultimately breaking above that key level. That's considered confirmation of an uptrend by technicians.

Going forward, Fitzpatrick says the stock's short-term 50-day moving average is now crossing above its 200-day moving average, in what's known as a bullish crossover. Typically, he says, the pattern is a precursor to higher stock prices.

In fact, above $83, the level at which the stock briefly peaked three weeks ago, Fitzpatrick says the stock could roar.




Honeywell

Looking at the daily chart of Honeywell, Fitzpatrick points out shares have been trading sideways for about 5 months right after an uptrend pushed the stock up to that level. Technicians call that building a high base.

And although consolidation isn't always bullish, in this case, other patterns suggest it is. For example, Fitzpatrick says the consolidation occurred on lower than average volume. Low volume is a bullish sign because it suggests big institutional investors didn't sell. Instead, they held even as shares flat lined for months on end.

Then, in another bullish development, over the past few weeks Honeywell has marched from $93 to $97.

Fitzpatrick believes the advance reflects a breakout from a high base, and while he says it's hard to come up with a price target for a stock that's flirting with all-time highs, the last time Honeywell broke out of a similar base was in early 2013, and that led to a 50 percent rally.

The key level, he says $100. If Honeywell can jump that hurdle, then Fitzpatrick sees the stock going much higher.


Morgan Stanley

Looking at the daily charts of Morgan Stanley, Fitzpatrick sees three reasons why shares could rally significantly. First, Morgan Stanley's 200-day moving average has been acting as a powerful floor of support around $30.

Second, the stock has been trading sideways for so long that its 50-day moving average is basically flat. Fitzpatrick sees this trend-vacuum as setting the stage for the resumption of the uptrend that made Morgan Stanley such a hot stock last year.

Third, in the past two months, Morgan Stanley had been stuck in a very narrow range, between $31.50 and $32.50. These elevated levels haven't been seen since the financial meltdown in 2009, so once the stock breaks out from this range, Fitzpatrick thinks that the sky's the limit.

However, there is a caveat. If Morgan Stanley drops below its 200-day moving average, then Fitzpatrick thinks all bets are off and the stock could get slammed.

Due to these bullish technical patterns, Jim Cramer thinks all three stocks warrant attention. "In a volatile and possibly overextended market, I like to search for stocks with both strong fundamentals, as demonstrated by positive earnings reports, as well as strong technicals."

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"Based on Dan Fitzpatrick's interpretation of the charts Kinder Morgan Energy Partners, Honeywell, and Morgan Stanley all fit the criteria. I think all three merit your attention and your homework, if not necessarily your money right here right now."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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