For his second "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer spoke with Bracken Darrell, president and CEO of Logitech International S.A. (LOGI) , a stock that's up sharply as consumers outfit their home offices with new computer peripherals.
Darrell said that Logitech has been on the cutting edge of four high-growth categories including video conferencing, gaming, creativity and remote work -- all of which have been accelerating since the pandemic began.
When asked about remote work, Darrell said everyone can benefit from upgrading their webcam to include better audio, video and ergonomics.
Let's check out the charts.
In this daily bar chart of LOGI, below, we can see that prices made a "V" bottom in March. A rapid decline into the March lows and then a rapid rally to new highs. LOGI is above the rising 50-day moving average line as well as the rising 200-day moving average line. The trading volume was heavy into the March low but even heavier recently as prices surged to new highs.
The On-Balance-Volume (OBV) line has moved up to a new high for the past 12 months to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator turned bullish in early April and it is still pointed up and well above the zero line.
In this weekly bar chart of LOGI, below, we can see a large consolidation pattern for about two years between $30 and $50. This breakout over $50 should yield a price target in the $70 area (by taking the height of the pattern, $20, and adding it to the breakout point at $50).
The 40-week moving average line has a positive slope and the weekly OBV line is in an uptrend telling us that buyers of LOGI have been more aggressive for months. The MACD oscillator is bullish.
In this first Point and Figure chart of LOGI, below, we used daily price data. Here prices have reached an upside price target in the $50 area.
In this second Point and Figure chart of LOGI, below, we used weekly price data. Here a price target of $69 is being indicated. This target dovetails with the target from the weekly bar chart above.
Bottom line strategy: Aggressive traders could try to go long LOGI on a pullback into the $50-$48 area if available. Risk below $45. The $70 area is our price objective.
