With Valentine's Day just around the corner, the subject of flowers came up during the 'Lightning Round' of Mad Money Tuesday night (maybe someone will ask about chocolate tonight). Responding to a question about 1-800-Flowers.com (FLWS) Jim Cramer said, "They crushed the quarter but I don't think you should buy it up here."
Let's put aside the oasis and check the charts and indicators.
In this daily bar chart of FLWS, below, we can see a choppy sideways to lower trading range for FLWS until last week when prices gapped higher. FLWS is extended above its recent trading range.
Prices crossed above and below the 50-day simple moving average line several times over the past year. It was not until November that the slope of the line turned positive. The slower-to-react 200-day moving average line has been positive for most of the past 12 months. The 50-day line recently crossed the 200-day line for what is commonly called a golden cross.
The daily On-Balance-Volume (OBV) line shows a decline from August to late January telling us that sellers of FLWS has been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero line.
In this weekly bar chart of FLWS, below, we can see the progress for the stock over the past three years. Prices are above the rising 40-week moving average line.
The weekly OBV line shows improvement the past two months after a four month decline.
The weekly MACD oscillator is bullish.
In this weekly Point and Figure chart of FLWS, below, we can see how extended prices are without a price gap. A price target has been reached.
Bottom line strategy: FLWS did rally on stronger volume recently but it was weakening from August and that is a problem in my opinion. With prices extended I would take a very cautious stance on the stock as a deep pullback is possible. You can avoid the stock but do not forget to buy the flowers.