As part of Jim Cramer's game plan for next week as covered on his Mad Money program Friday night, Cramer said for Tuesday he'd buy Dave & Buster's Entertainment, the company with the cute symbol, (PLAY) . Let's check the charts and indicators.
In this daily bar chart of PLAY, below, we see some price action that is not constructive. Prices declined in the fourth quarter of 2018, breaking the July lows and gapping below the rising 200-day moving average line. The 50-day average line had a negative slope and the On-Balance-Volume (OBV) line moved down sharply in December, telling us that sellers were more aggressive. The chart of PLAY recovered unevenly from January, but the indicators are not convincing.
Prices are below the cresting 50-day and 200-day moving average lines after five months of crisscrossing prices several times. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish configuration below the zero line.
In this weekly bar chart of PLAY, below, we can see a mixed picture. Prices have been making higher lows in recent months, but prices are still below the 40-week moving average line. The volume pattern is difficult to interpret, but the weekly OBV line shows an uptrend over the past three years.
The MACD oscillator on this longer time frame is making a bearish crossover to the downside from above the zero line.
In this Point and Figure chart of PLAY, below, we can see a downside price target of $46.50.
Bottom-line strategy: I am not much of a game player, but PLAY would look more attractive if it can rally above $54.