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  1. Home
  2. / Investing

Let's Take an Intelligent Look at C3.ai Inc.'s Charts

This artificial intelligence company looks bright, but can it outsmart the competition over the long run?
By BRUCE KAMICH
Mar 03, 2023 | 01:41 PM EST
Stocks quotes in this article: AI

C3.ai Inc. (AI)  is a platform to develop, provision, and operate artificial intelligence applications. From what I have been reading, AI applications can streamline operations, increase security, improve data sorting, and even convert customer support divisions into revenue generators.

 
Sounds terrific, but does that make the stock a good trade or investment? Let's check the charts.
 
In this daily bar chart of AI, below, I can see that prices were in a downtrend and did not hit a low until December. Prices then soared three-fold in a little more than a month -- truly amazing.
 
Trading volume soared on the advance and contracted on the subsequent correction and that is what I like to see. AI corrected a third of the advance and have gapped higher Friday. I don't know where prices will close today, but it looks like AI is resuming the advance.
 
The slope of 50-day and the 200-day moving average lines have both turned positive and a bullish golden cross of these two lagging indicators can be seen. The On-Balance-Volume (OBV) line is strong while the Moving Average Convergence Divergence (MACD) oscillator is poised for a new outright-buy signal.
 
 
In this weekly Japanese candlestick chart of AI, below, I see a developing bull story. Prices have made a low and rallied above the 40-week moving average line. I would have preferred to see a proper base form but you have to deal with the charts as they unfold. Trading volume climbed but the weekly OBV line shows a mixed result - up and then down. The MACD oscillator is moved above the zero-line.
 
 
In this daily Point and Figure chart of AI, below, using even dollar scaling the chart shows a downside price target in the $14 area. A trade at $27 may be needed to turn this chart bullish.
 
 
In this second daily Point and Figure chart of AI, below, I used percentage change scaling. Here the chart suggests a price target in the $39 area.
 
 
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In this third Point and Figure chart of AI, below, I used weekly price data. Here the software projects the $69 area as a possible price objective.
 
 
Bottom line strategy: I would prefer to see a price chart with a well established base pattern, but the charts of AI have turned to the upside. Hopefully AI is not a "flash in the pan" and the rally has staying power. Aggressive traders could go long AI at current levels risking to $19.50.
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TAGS: Investing | Technical Analysis | Technology

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