Five9 FIVN is a leading provider of cloud contact center software. On Monday the company's CEO resigned to take another job and on Tuesday a major sell firm cut its fundamental rating of the stock to equal-weight. Let's check out the charts and indicators.
In this daily bar chart of FIVN, below, we can see that prices have declined for the past 12 months. Prices were cut in half from $160 to $80 and buying interest (support) did not last for long. Prices gapped lower Monday and closed very weak. FIVN trades below the declining 50-day moving average line and nearly at half the level of the weak 200-day moving average line.
The On-Balance-Volume (OBV) line has dropped sharply since early August as there has been a "rush to the door." Sellers of FIVN have been very aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of FIVN, below, we went back four years to see where prices may be headed. Prices have given back most of its bull run over the past four years. Prices trade below the declining 40-week moving average line. The weekly OBV line is bearish as is the MACD oscillator.
In this daily Point and Figure chart of FIVN, below, we can see a potential downside price target in the $34 area.
In this weekly Point and Figure chart of FIVN, below, we see a $30 price target.
Bottom line strategy: The weeks ahead are going to be very challenging for shareholders of FIVN. Avoid the long side as we could see further declines to the $34-$30 area.
