The cloud-based call center platform Five9 (FIVN) has a group of charts that suggest we are witnessing a double-bottom pattern. Let's check it out.
In this daily bar chart of FIVN, below, I can see the prices made a low in November and then rallied into February. Prices declined to a second slightly higher low in May. FIVN has rallied above the 50-day moving average line and is poised to rally to the 200-day line, I believe.
The trading volume was heavy in October and November and again this May, suggesting more investor interest at the two lows. The On-Balance-Volume (OBV) line made lows in October/November but a modestly lower low in May. The Moving Average Convergence Divergence (MACD) oscillator made roughly equal lows in March and May and is not far below the zero line now.
In this weekly Japanese candlestick chart of FIVN, below, I can see that prices made a major decline in the past two years. Prices have made two lows but remain below the declining 40-week moving average line. The weekly OBV line could be making a second low. The MACD oscillator has improved from November but is still below the zero line.
In this daily Point and Figure chart of FIVN, below, I can see a potential upside price target in the $91 area.
In this weekly Point and Figure chart of FIVN, below, I used close only price data and got a $75 price target.
Bottom line strategy: Not all technicians use chart patterns. Not all technically oriented traders use chart patterns. I do. Traders could probe the long side of FIVN at current levels risking to $55 for now. Add to longs above $66.
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