Luminar Technologies Is Likely to Give Back All of its Gains

Let's look at the charts and indicators.
Stocks quotes in this article: LAZR

The "Lightning Round" segment of Mad Money is a viewer favorite. On Tuesday night one caller asked Jim Cramer about Luminar Technologies (LAZR) : "This whole group is cooling off," noted Cramer.

Let's see what the charts are up to.  

In this daily bar chart of LAZR, below, we can see that prices ran up sharply from $10 to over $45. Prices made a quick correction in early December and then traded sideways from $30 to $40.
 
The On-Balance-Volume (OBV) line rolled over as prices traded sideways and the Moving Average Convergence Divergence (MACD) weakened steadily. Now prices are trading below the declining 50-day moving average line. 
 
 
In this daily Point and Figure chart of LAZR, below, we can see a potential downside price target in the $16 area.  
 
 
Bottom line strategy: Traders long LAZR should liquidate those positions. The $30-$40 area should now act as resistance and support may appear in the $15 to $10 area. 
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