During Tuesday evening's Mad Money program, the "Lightning Round" segment did not disappoint viewers. One caller asked Jim Cramer about Corsair Gaming (CRSR) : "I can't recommend it here. Let's wait for it to come down," was Cramer's advice.
Let's check out the charts of this developer and manufacturer of gear and technology for gamers.
In this daily Japanese candlestick chart of CRSR, below, we can see that prices rallied strongly from their IPO price around $15. The strength carried prices up to the $50 area by late November before a correction unfolded. Prices have been consolidating in a sideways fashion. CRSR is now trading above the rising 20-day moving average line and the rising 50-day moving average line (not enough price data to use our "standard" of 50-days and 200-days).
The On-Balance-Volume (OBV) line has moved up and down with the price action. Signs of more aggressive buying is needed in my opinion to warrant a long position.
The Moving Average Convergence Divergence (MACD) oscillator is poised to turn upwards for a new outright buy signal.
In this daily Point and Figure chart of CRSR, below, we used a traditional scaling method of even dollar amounts. Here the chart shows a potential upside price target in the $58 area but a breakout trade at $45 is needed.
Bottom line strategy: The charts of CRSR, above, are "just okay". There is an upside price target but in this current market environment I would look for further sideways price action and stronger signs of accumulation before diving into a long position. Stand aside for now.
