Mad Money

Cramer: Explosive rally coming for Facebook

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It seems to Jim Cramer that all anyone cares about lately is what is going to make money next week, or even in the next day or the next minute. But investing is not about getting that instant gratification or just finding the stocks that will go up in the next session.

"What we really want are high-quality, long-term holdings that can go up many points over a series of weeks or months, or even years, as long as the fundamentals hold up," the "Mad Money" host said.

So, instead of using up time worrying about things like Greece or the dollar, Cramer chose to use his time helping investors find stocks with strong fundamentals that can be sustainable in the long term.

That is why Cramer turned to Tim Collins, a technician and colleague of Cramer's at He identified Wells Fargo, Facebook and WhiteWave Foods as having some of the best weekly charts out there. Aside from having attractive charts, these stocks really have nothing in common besides the fact that Cramer wants investors to consider them for their portfolio.

Bank stocks have been strong performers lately because of climbing interest rates. Wells Fargo is Cramer's favorite name in the group, although the past 18 months have not been smooth sailing for this stock.

However, what Collins found interesting is that every time Wells Fargo dipped, investors stepped in and bought it back quickly. This repetitive action created a solid up-trending floor of support that hasn't been broken. Still, he was concerned with the slop of those highs.

Thus, Collins suggested to wait for the stock to pull back below its eight-week moving average of around $56, let it come down another 3 to 4 percent, and then pounce.

Then, there is Facebook; investors are focused on its $85 level, which has been so hard to break. The stock finally broke out of this ceiling on Tuesday, around $86. Collins pointed out that the stock has been consolidating for about six months, and the recent cup pattern isn't new. The consolidation won't lead to a new rally, but it does mean it will gently move higher.

Collins thinks that if the stock can stay above $86 through the end of the week, then it will trigger an explosive rally. If that happens, he expects it to jump to $93.50, at a minimum, and may hit triple-digit territory.

"As for the fundies, this, the fastest growing major company I follow, could earn $3.50 next year. Give it a 30-multiple, only fair considering its growth rate, and you've got a $105 stock," Cramer added.

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Collins also noted that WhiteWave Foods has also been behaving similarly to Facebook, in that it stays within a 7.5 percent range of its eight-week simple moving average, but when it breaks out higher, it is an explosive move.

He recommended buying WhiteWave on a pullback, around $45, but ultimately sees the stock skyrocketing past $51.40 and then flying up to $55, soon.

So, while the charts all look fantastic for Facebook, Wells Fargo and WhiteWave, there isn't much else in common with these stocks. But when the fundamentals and the technicals are in agreement, Cramer takes them seriously and recommends some buying.

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