Cloud-based call center platform company Five9 (FIVN) was rated a new fundamental buy at Rosenblatt Securities with an $85 price target Friday. Let's check and see if FIVN will take our technical call.
In the daily bar chart of FIVN, below, I see a chart that is struggling to make a bottom. Prices trade below the negatively sloped 50-day and 200-day moving averages.
The On-Balance-Volume (OBV) line moved higher from November to early February but has moved lower the past two months. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory but trying to cross to a cover shorts buy signal.
In the weekly Japanese candlestick chart of FIVN, below, I see a weak picture. Prices are in a longer-term downward trend. FIVN rallied to the underside of the declining 40-week moving average line in early February and failed to break out to the upside. The most recent candle has a small upper shadow suggesting that traders are rejecting the upside.
The weekly OBV line turned down from early February. The MACD oscillator is crossing to the downside for a new outright sell signal.
In this daily Point and Figure chart of FIVN, below, I can see a potential upside price target in the $74 area. A trade at $59.23 is likely to turn things bearish.
In this weekly Point and Figure chart of FIVN, below, I can see a potential downside price target in the $36 area.
Bottom-line strategy: I like it when the charts and the fundamentals are in alignment but unfortunately that is not the case with FIVN right now.
