Global Payments (GPN) was mentioned by Jim Cramer in Wednesday night's Mad Money program. It has been a strong performer in the S&P 500 over the past few years and a member of the red-hot financial technology sector that's revolutionizing finance. GPN has rallied 352% over the past five years.
Let's check in with the current charts and indicators.
In this daily bar chart of GPN, below, we can see how prices have traveled nearly "straight up" since late December from $95 to $165. Corrections along the way have been short-lived and sideways. GPN is above the rising 50-day and 200-day moving averages. A bullish golden cross of these two averages happens early in March.
The daily On-Balance-Volume (OBV) line has been rising from early January and supports the bullish story on the chart. The 12-day price momentum indicator in the lower panel does show some slowing in the advance recently but this bearish divergence is not big enough to worry about right now.
In this weekly bar chart of GPN, below, we can see that prices have more than doubled in the past three years. GPN is above the rising 40-week moving average line and the weekly OBV line is pointed up.
The Moving Average Convergence Divergence (MACD) oscillator has been narrowing and we might see a bearish crossover in the weeks ahead.
In this Point and Figure chart of GPN, below, we can see that prices have dramatically overrun their price target of $119. A downward reaction or a period of sideways price action is probably a good more from here.
Bottom line strategy: The price of GPN has traveled a long distance since late December. Prices could be considered extended and we don't have a higher price target from our Point and Figure chart. These are not strong reasons to sell but they are reasons to be cautious and have a sell stop below $145.