The coronavirus is front and center, and tackling it is the top concern among investors and the public, Jim Cramer told his Mad Money viewers Friday evening. Updates on the spread of Covid-19 and the government's response will be the first thing investors turn their attention to Monday morning.
After the close Monday, Coupa Software Inc. (COUP) is scheduled to report its latest earnings. If the numbers are good, the stock could rip, Cramer said. With the market set to plunge Monday morning let's see if the charts offer any positive ideas.
In the daily bar chart of COUP, below, we can see that prices have made a considerable decline since their peak in February. The slope of the 50-day moving average line is negative and the 200-day moving average line is cresting.
The daily On-Balance-Volume (OBV) line has been declining since early January telling us that sellers of COUP have been more aggressive for a while now.
The 12-day price momentum study in the lower panel does not yet show any slowing in the pace of the decline. Buyers should probably wait for a bullish divergence before venturing out.
In the weekly bar chart of COUP, below, we can see a bearish picture. Prices are below the 40-week moving average line.
The weekly OBV line is weak and so is the Moving Average Convergence Divergence (MACD) oscillator. Potential chart support might happen around $70 (prior resistance) but in this market environment I would not count on it.
In this weekly Point and Figure chart of COUP, below, we can see a discouraging downside price target in the $20 area. The daily chart (not shown) showed a $130 price target that was obviously exceeded.
Bottom-line strategy: I would like to see COUP beat consensus estimates with its quarterly numbers but traders might use a bounce or rally to sell. COUP is probably a well-run company but the desire to get liquid could overwhelm buyers in the near-term. Stay nimble.