Automation tool company UiPath (PATH) rallied Thursday as one sell-side firm praised its 'solid' Q2 results and guidance. The fundamental story may be positive right now, but I would not get too bullish just yet.
Let's check it out.
In this daily bar chart of PATH, below, I can see that prices are firm today but still remain in a sideways trading pattern from February. Prices have been trading around the 50-day and 200-day moving average lines for several months.
The trading volume has been more active since late May but the On-Balance-Volume (OBV) line has moved sideways the past three months. The Moving Average Convergence Divergence (MACD) oscillator is still below the zero line.
In this weekly Japanese candlestick chart of PATH, below, I see a neutral chart setup. Prices turned sideways after a long decline but prices have not managed to pull away from the 40-week moving average line.
The OBV line is not rising and thus does not give us reason to go long. The MACD oscillator looks like it is moving back below the zero line for an outright sell signal.
In this daily Point and Figure chart of PATH, below, I can see a price target in the $18 area - not much of a target.
In this weekly Point and Figure chart of PATH, below, I can see a downside price objective in the $10 area.
Bottom line strategy: With a set of mixed charts, above, I cannot be recommending the long side of PATH at this juncture in time.
