Jim Cramer, during his "Mad Money" program Monday, checked in with Dean Stoecker, CEO of Alteryx Inc. (AYX) , the cloud analytics software provider that's seen its share price plunge from $147 to just $120 in recent days, as investors flee fast-growing stocks.
Stoecker said Alteryx offers code-free and code-friendly methods for users to perform their own analytics. He said for many, the spreadsheet still remains the preferred tool for analyzing data, but that people cannot process millions or hundreds of millions of rows of data with a spreadsheet, unlike with Alteryx.
Companies, sports teams in the NFL and casinos use Alteryx for its predictive modeling tools and other offerings, he said.
When asked about the falling stock price, Stoecker said he's not worried, as the company's long-term outlook remains strong. When I looked at the charts of AYX in late August, however, I was concerned as the daily bar chart was starting to show weakness. At the time, I said that buyers "could remain patient and consider the $100 area as a potential purchase area, perhaps in the month of October when I anticipate the broad market could bottom." Let's what the charts look like now.
In this updated daily bar chart of AYX, below, we can see the recent sharp downside break with prices closing below the rising 50-day moving average line. The rising 200-day moving average line intersects around $90.
The daily On-Balance-Volume (OBV) line moved sideways in July and August, while prices traded higher creating a bearish divergence. The OBV line is now pointed down signaling more aggressive selling.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal.
In this weekly bar chart of AYX, below, we can see that prices have a parabolic run from early 2017 and got extended above the rising 40-week moving average line. The weekly OBV line has peaked and the MACD oscillator is close to a take-profits sell signal.
In this Point and Figure chart of AYX, below, we can see a sharply lower Point and Figure price target of $81.
Bottom line strategy: In our last update we suggested the $100 area as a potential purchase price in October. Now I would suggest the $90 area as a potential area to go long.