For his final "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer checked in with Rene Lacerte, founder and CEO of Bill.com Holdings (BILL) , the cloud software company which just posted strong earnings that included top- and bottom-line estimate beats.
Lacerte said that every small business has a shoebox of bills and receipts, and with Bill.com, those businesses can finally go digital.
Bill.com got its start in 2006, Lacerte continued, and has been slowly automating more and more back office functions for business owners.
While the pandemic has been a rough time for many businesses, Lacerte said it's also proven the power and time savings of going digital.
Let's check out the charts and indicators.
In this daily bar chart of BILL, below, we can see that prices made a low in March and then a successful retest in early April. Prices have been on the rise and are trading above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line only shows gains from September instead of from March - interesting. The Moving Average Convergence Divergence (MACD) oscillator was in a sell mode in late January and then flipped to the upside with the surge higher in BILL.
In this weekly bar chart of BILL, below, we see a mixed picture. Prices are in an uptrend above the rising 40-week moving average line. Trading volume has been neutral since October but a picture of rising volume would be more convincing.
The On-Balance-Volume (OBV) line turned flat in January suggesting a balance between buyers and sellers. The MACD oscillator recently flipped from defensive to bullish.
In this next chart we went to a daily Point and Figure display. Here we can see that price reached and exceeded a $178 price target.
In this weekly Point and Figure chart of BILL, below, we can see a potential longer-term target of $350.
Bottom line strategy: Traders looking to go long BILL should be patient and wait for a pullback/correction to unfold. Prices have made a good run to the upside and I would anticipate some degree of profit taking. Let's wait and see how things develop.