Jim Cramer told Mad Money viewers Wednesday night that after the high-flying debut of Coinbase (COIN) he circled back to many of last year's hottest IPOs to see if they're worth buying now that the hype has subsided.
With shares of SNOW trading well above $190 let's check out FROG. JFrog is an automation solution for deploying software.
In this daily bar chart of FROG, below, we can see that prices have weakened from October, right after going public. Prices have made a small lopsided double bottom pattern in March and are now trading above the rising 20-day moving average line. The 50-day moving average line is declining but being tested now.
The On-Balance-Volume (OBV) line has shown some improvement from early March telling us that traders are now becoming more aggressive which is a good thing.
The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal in early March and is now close to crossing above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of FROG, below, we can see a bottom reversal pattern in late March and the first week of April. The weekly OBV line made a lower high as the beginning of an upside reversal and the 12-day price momentum study is showing improvement.
In this daily Point and Figure chart of FROG, below, we can see that the software is projecting an upside price target in the $78 area.
Bottom line strategy: As with many IPO's we do not have a lot of price history to work with but what we now see is positive. Aggressive traders could go long FROG towards $50 and then risk just below $45. The $78 area is our price target.