For his third and final "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer checked in with Vlad Shmunis, chairman and CEO of RingCentral Inc. (RNG) , the video conferencing and communications platform.
Shmunis said RingCentral's mission is not about competing with the likes of Zoom Video (ZM) or Microsoft (MSFT) Teams, it is providing their customers with a complete communications platform that works for today's world.
When asked about the effects of the pandemic, Shmunis noted that they're already looking beyond the work-from-home trend to what's coming next in 2021, which will be a hybrid working model. Employees will be working from home, the office and other locations.
Let's check out the charts from home.
In this daily bar chart of RNG, below, we can see that prices made a seven-month sideways consolidation pattern from May to the end of November. Prices finally broke out on the upside this month. RNG is trading above the rising 50-day moving average line. The rising 200-day moving average line was successfully tested in September and November.
The On-Balance-Volume (OBV) line drifted slightly lower from May to early November when it started a slight uptrend. The Moving Average Convergence Divergence (MACD) oscillator turned upwards and bullish in November.
In this weekly bar chart of RNG, below, we can see that prices are up about seven-fold over the past three years. Prices are above the rising 40-week moving average line and tests of the line have been buying opportunities in the past three years. The weekly OBV line is bullish and rising, and tells us that buyers have been more aggressive. The MACD oscillator just turned upwards to a fresh, outright buy signal.
In this daily Point and Figure chart of RNG, below, we can see a new and higher price target of $451 being projected. We can also see that there is not much nearby price support and that a decline to $344 and below could mean we see a minor top reversal.
Bottom line strategy: RNG has beautiful and bullish longer-term charts, but in the very short-run we could see RNG pull back to retest the upper end of its long consolidation pattern. Investors should consider a correction to the $315 area as a buying opportunity.