LPSN is the artificial intelligence technology behind many of your online customer service inquiries. Shares of LPSN were up 3% Monday on strong quarterly earnings.
Locascio said companies are still spending $1.2 trillion a year on analog phone technologies to service their customers and it's long past time to digitize those transactions. Younger consumers don't want to call a company and sit on hold, he said, they want to message a company and get their questions answered quickly. That type of conversational commerce is what LPSN makes happen, according to Locascio. LPSN is making all sorts of interactions possible. Locascio said he's spending to accelerate growth.
Cramer said that chatbots and artificial intelligence remains an interesting story and he's still a fan of LPSN. Sounds like a great fundamental story but let's also see how the charts and indicators are positioned.
In this daily bar chart of LPSN, below, we can see that prices just made a new high breaking above the peaks seen in September. In January LPSN closed above the 50-day average line and the 200-day line. Both averages are rising and the 50-day line is close to crossing above the 200-day line for what is commonly called a golden cross.
This moving average crossover is typically late and can be a successful buy signal in trending markets. The volume of trading has been rising this year and this helps to confirm the price gains.
The On-Balance-Volume (OBV) line turned up in November and made a higher low in December even though prices made a slightly lower low. The OBV line has gone on to make new all-time highs to confirm the price breakout.
The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed above the zero line in January for an outright go long signal. The MACD oscillator continues to move higher in a bullish fashion.
In this weekly bar chart of LPSN, below, we can see an impressive rally for shares of LPSN the past three years. Prices are above the rising 40-week moving average line as prices reach a new all-time high.
The weekly OBV line has been moving higher the past three years to confirm the price action.
The weekly MACD oscillator gave a cover shorts buy signal in January and an outright go long signal this month.
In this first Point and Figure chart of LPSN, below, we used daily data to create the chart. There is a double bottom pattern in late 2018 and prices have met and exceeded a $23.95 price target.
In this second Point and Figure chart of LPSN, below, we use weekly data to create the chart and generate a longer term price target of $49.77.
Bottom line strategy: LPSN has been really impressive on the charts. If you are looking to go long or add to longs I would suggest trying to buy a dip towards $26 if available. Risk a close below $24 and look for gains to $38 and then maybe $48 in the months ahead.