In his "Homework" segment of Mad Money Friday evening, Jim Cramer followed up on a few stocks that had stumped him during earlier shows. He said that Everbridge (EVBG) , the critical event management platform, is an intriguing story. The company debuted at $12 a share and now trades over $90. Cramer said the stock is still cheap at nine times sales estimates, given its stellar growth rate. He suggested buying the stock, but only into weakness.
Let's check out the charts.
In this daily bar chart of EVBG, below, we can see that prices have stayed strong in January when other stocks have pulled back or corrected. EVBG is trading above the rising 50-day moving average line and the rising 200-day moving average line. After moving below the 200-day line in October for a dead or death cross, the 50-day line moved back above the 200-day line earlier this month for a bullish golden cross.
The daily On-Balance-Volume (OBV) line has been improving since September and tells us that buyers of EVBG have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory but it has made a bearish divergence from the price action as the indicator is making a lower high when prices made a higher high.
In this weekly bar chart of EVBG, below, we can see that prices recently closed back above the rising 40-week moving average line.
The weekly OBV line is pointed up and so is the MACD oscillator.
In this Point and Figure chart of EVBG, below, we can see that a potential upside price target in the $116 area is being projected.
Bottom line strategy: Aggressive traders could go long EVBG at current levels and risk below $85 while looking for gains to the $116 area.
