Redfin Corp. (RDFN) was mentioned during the Lightning Round in Monday night's Mad Money program. Jim Cramer was very clear in his opinion ""This was the first stock to tell you that real estate was floundering. No way." Let's see what the charts and indicators look like.
In this daily bar chart of RDFN, below, we can see a peak back in late December/early January. Prices crept higher form early February to late July and then they quickly broke to the downside. RDFN is trading below the bearish 50-day moving average line and the bearish-sloped 200-day line. The On-Balance-Volume (OBV) line shows a decline for the past twelve months. Even though prices made a new low for the move down this month the OBV line has not made a new low. In addition to this bullish divergence we can see that price momentum is giving us a bullish divergence from August to October.
In this weekly bar chart of RFDN, below, we can see a bearish alignment of our indicators. Prices are below the bearish 40-week moving average line. The weekly OBV line is pointed down and so is the MACD oscillator.
In this Point and Figure chart of RDFN, below, we can see a nearby downside price target of $14.19.
Bottom line strategy: there is a bullish divergence on RDFN on OBV and price momentum but that is not enough of a reason for me to go long - stand aside.