For his second "Executive Decision" segment of Mad Money Monday evening, Jim Cramer spoke with Susan Salka, chairman and CEO of AMN Healthcare Services (AMN) , the healthcare staffing provider that's answering the call of the Covid pandemic.
Salka explained that the pandemic has accelerated and amplified the shortage of nurses and medical practitioners in our country. There continues to be a huge demand for healthcare professionals as a growing percentage of nurses are burning out, retiring early, or choosing to stay home to protect their own health.
AMN has been active in supporting nurses and healthcare workers any way they can, including expediting onboarding, assisting with credentials, and offering mental health services to help them cope with the pandemic.
Let's check out charts and indicators of AMN.
In this daily bar chart of AMN, below, we can see that prices had some erratic trading in March when the broad market was in temporary "free fall". AMN, however, did not bottom until May and then the subsequent recovery rally has seen a number of corrections along the way. Prices are now trading around the rising 50-day moving average line and above the still declining 200-day moving average line.
The On-Balance-Volume (OBV) line made a low with prices in May and then rose to early November to confirm the price advance. The OBV line has turned lower this month with the price action.
The Moving Average Convergence Divergence (MACD) oscillator has just crossed below the zero line for an outright sell signal.
In this weekly bar chart of AMN, below, we can see a less than robust picture. Prices are above the declining 40-week moving average line.
The weekly OBV line peaked in October and the MACD oscillator has narrowed in recent weeks telling us that the trend strength is fading.
In this daily Point and Figure chart of AMN, below, we can see that the software is projecting a potential downside price target in the $55 area.
In this weekly Point and Figure chart of AMN, below, we can see a possible price target of $98.
Bottom line strategy: In the short-run it looks like AMN can weaken to the $55 area. Assuming prices stabilize and new aggressive buying develops we could see an eventual rally to the $98 area in 2021. Let's revisit the charts in a couple of months.
