Ittycheria explained that MongoDB is built to help companies work more easily with their data. It was built for the way developers code so they can build modern data applications quickly and at scale.
For customers like 1-800 Flowers (FLWS) , which has a very seasonal business, it doesn't make sense to keep high-throughput applications running year round, which is why MongoDB allows them to scale up and down in the cloud to balance cost and performance.
MongoDB currently has over 31,000 customers and recently added a new pay-as-you-go service on Amazon's (AMZN) AWS Marketplace that lets new customers get started with Mongo for just a few dollars a month.
Ittycheria noted that in an environment where labor is hard to find, having tools like MongoDB helps companies be more productive so they can do more with fewer developers.
We looked at MDB on December 7 and wrote that "Today's strong gap higher could quickly change the charts but we do not know how prices will close Tuesday. The gap may remain but prices could close near the lows of the day instead of the highs. The close will set the stage for the short-term. Let's give the situation a few days to see how much to risk to get long. Risk control is the key to long-term trading success."
Let's see how the charts and indicators look today.
In this updated daily bar chart of MDB, below, we can see that prices have held onto gains from the upside price gap earlier this month. I consider staying above a gap a positive sign as it suggests that buyers are anxious to buy and not being aggressive profit takers. MDB is trading around the 50-day moving average line but still well above the rising 200-day line.
The On-Balance-Volume (OBV) line shows a slight decline now from early November. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but trying to improve with a cover shorts buy signal.
In this weekly Japanese candlestick chart of MDB, below, we can see a potential bottom reversal pattern at the end of November and the first week of December. We still need a bullish confirmation with a white real body this week. We still have some trading days to go.
The 40-week moving average line still has a positive slope. The weekly OBV line remains positive.
The MACD oscillator has crossed to the downside for a take profits sell signal. Narrowing of the two moving averages that comprise this indicator will be a positive development.
In this daily Point and Figure chart of MDB, below, we can see a potential downside price target in the $384 area.
In this weekly Point and Figure chart of MDB, below, we used close only price data and a traditional even dollar scaling. Here the software is projecting a potential upside price objective in the $794 area.
Bottom line strategy: Aggressive traders could nibble on the long side (small purchases) of MDB at current levels if they can afford to risk to $445.