For his "Executive Decision" segment of Mad Money Monday evening, Jim Cramer sat back down with Rowan Trollope, CEO of Five9 (FIVN) , the virtual call center software provider whose shares fell 8% Monday after reporting a solid quarter.
Trollope said that Five9 is a critical component for companies like Teladoc Health (TDOC) . He said that in today's world your employees can be anywhere which makes Five9 even more valuable. Five9's cloud infrastructure helps companies manage their most stressful times as well as transferring between call centers and agents losing the context of why you called.
Let's check and see if the charts of FIVN are dialed in right.
In this daily bar chart of FIVN, below, we can see that prices have been in an uptrend since early October and made a quick downward correction in recent days. Prices dipped to test the rising 50-day moving average line but managed to close back above the line Monday. The 200-day moving average line is rising and was tested several times back in October.
The On-Balance-Volume (OBV) line shows a strong rise the past 12 months but only a recent minor dip. The longer-term trend of the OBV line suggests we will see renewed price gains.
The Moving Average Convergence Divergence (MACD) oscillator has displayed a weak pattern from December. A price rally now will help improve this indicator.
In this weekly bar chart of FIVN, below, we can see that prices have been rising in a dependable uptrend the past three years. Prices have tested and bounced off the rising 40-week moving average line several times. The more times a trendline or moving average is tested the more valid it becomes.
The weekly OBV line shows a strong rise the past three years and only a minor dip so far this month.
The MACD oscillator has narrowed this month but a possible crossover will depend on the price action going forward.
In this Point and Figure chart of FIVN, below, we see at least two key features. Prices in a bearish column of "O's" with a potential downside price target in the $57 area. Just below the market the volume at price bars (left scale) shows a fair amount of potential chart support suggesting we won't see a steep decline.
Bottom line strategy: FIVN should stabilize in the $70 area and eventually resume its uptrend. Wait for the OBV line to make a few new highs before probing the long side.