• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Five9 Could Climb Still Higher on the Charts

Growth is being driven by the digital transformation and the cloud transformation that have been turbocharged by the pandemic.
By BRUCE KAMICH
Nov 02, 2020 | 09:40 AM EST
Stocks quotes in this article: FIVN

For his final "Executive Decision" segment of Mad Money Friday evening, Jim Cramer checked in with Rowan Trollope, CEO of call center software provider Five9 (FIVN) , which just reported a nine-cent-a-share earnings beat.

Trollope said that growth at Five9 is being driven by the digital transformation and the cloud transformation, two trends that have been turbocharged by the pandemic. He said his team has executed extremely well and delivered a lot of wins this quarter.

When asked about their technology, Trollope explained that Five9 provides new inference technologies that lets customers speak in plain English about the reason for their call and artificial intelligence will resolve their problem or route them to where they need to go with incredible accuracy. He said inference systems can shave minutes off of every phone call, translating into huge savings.

Consumers prefer self-service options when they call a company, Trollope added, especially younger consumers and millennials. He said we are only at the beginning of this technology revolution.

Let's check out the charts.

We last looked at FIVN back on August 14 and wrote that, "The charts and indicators suggest that FIVN could trade sideways for a few weeks. Short-term traders might book profits while patient investors could continue to hold longs with stops on a close below $100. The $177 area is our longer-term price objective." Prices traded sideways until early October and then resumed their advance.

In this updated daily bar chart of FIVN, below, we can see that prices did resume their rally and hopefully patient investors stayed with the stock. Prices are above the rising 50-day moving average line and the rising 200-day moving average line. The trading volume was active from February to June but has slowed slightly in recent months.

The On-Balance-Volume (OBV) line shows a rise into October but it has leveled off slightly and needs to be watched closer for clues.

The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since April but is currently in a "take profits" mode.  

 
In this weekly bar chart of FIVN, below, we can see a parabolic rise in the stock over the past three years. Prices are above the rising 40-week moving average line.
 
The weekly OBV line is pointed up and the MACD oscillator is bullish. 
 
 
 
In this daily Point and Figure chart of FIVN, below, we can see that prices have reached and exceeded a $140 price target. 
 
 
 
In this weekly Point and Figure chart of FIVN, below, we can see a potential price target of $224. 
 
 
 
 
Bottom line strategy: Raise stop loss protection to a $135. Our price targets are $177, the round number of $200 and then the new Point and Figure target of $224.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Software & Services | Technology | Mad Money | Executive Interview

More from Investing

We Can't Predict the Rest of 2022, but We Must Have a Game Plan

Brad Ginesin
Jul 5, 2022 1:30 PM EDT

Many are forecasting bad times ahead, but are they going to extremes? Here's my strategy for the the second half of the year.

When Did We Stop Worrying About the Wealth Effect?

Peter Tchir
Jul 5, 2022 1:00 PM EDT

This looks like a market pricing in a recession/policy mistake.

Ford's Decline Is Decelerating

Bruce Kamich
Jul 5, 2022 12:31 PM EDT

Watch this key price level when things could shift.

Progressive's Commercials Are Well Known, But What About Its Charts?

Bruce Kamich
Jul 5, 2022 11:54 AM EDT

Traders could probe the long side of PGR.

Is Tesla Spinning Its Wheels?

Ed Ponsi
Jul 5, 2022 11:30 AM EDT

In addition to company-specific issues, Tesla is also fighting a tough macro environment.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:01 PM EDT PAUL PRICE

    A Recent Director Buy in Children's Place (PLCE)

    Four of the most recent insider trades in Children...
  • 07:34 AM EDT PAUL PRICE

    A $525,000 Vote of Confidence on Macerich (MAC)

  • 09:49 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Stop Wishing, Hoping, and Praying and Take Control...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login