During the fast-paced ' Lightning Round' of the popular Mad Money program Monday night, one caller asked Jim Cramer about Fidelity National Information Services ( FIS) : "This is a fantastic fintech. This is a great situation and no one is talking about it," said Cramer.
The company helps financial institutions and their clients conduct transactions through its range of software and services. The name is new to me so let's pay a visit to the charts.
In this daily bar chart of FIS, below, we can see that prices have risen strongly so far this year but there has been a shift in the past two months. FIS rallied from late December with only shallow corrections but the indicators showed some warning signs in early August. Prices pulled back about $10 on very heavy trading volume to retest the rising 50-day moving average line.
The On-Balance-Volume (OBV) line made a sharp decline telling us that sellers were very aggressive. The OBV line has not recovered.
The Moving Average Convergence Divergence (MACD) oscillator turned down at the end of July and is now below the zero line.
In this weekly bar chart of FIS, below, we can see a mixed picture. Prices are still in a long-term uptrend and above the rising 40-week moving average line.
The weekly OBV line shows a peak in July and then sideways movement suggesting a shift from aggressive buying.
The weekly MACD oscillator has crossed to the downside for a take profits sell signal.
In this Point and Figure chart of FIS, below, we can see that the software has projected a downside price target of $119.
Bottom line strategy: Something has changed over the past two months that tells me to be cautious about new long positions.
