A caller asked "Mad Money" host Jim Cramer about Magnite Inc. (MGNI) on Wednesday night.
"This is such a good idea. I'm a buyer," said Cramer to a caller during the show's "Lightning Round." The company provides a technology services to automate the purchase and sale of digital advertising inventory.
Let's check and see how the charts and indicators look. In this daily bar chart of MGNI, below, we can see how prices have soared from their long base around $5. Prices are above the rising 50-day moving average line and extended above the rising 200-day line. The On-Balance-Volume (OBV) line has been going up since September and tells us that buyers of MGNI have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment -- rising strongly above the zero-line.
In this weekly Japanese candlestick chart of MGNI, below, we can see that the latest candle shows a strong rejection of the highs by the extended upper shadow. Bearish confirmation is needed next week to confirm the top reversal. The OBV line and the MACD oscillator are bullish.
In this daily Point and Figure chart of MGNI, below, we can see that prices are well above the $45 price target.
In this weekly Point and Figure chart of MGNI, below, we can see a potential longer-term price target in the $84 area.
Bottom line strategy: The price of MGNI is extended -- too far above the popular moving averages. A pullback or correction is due and that could be a buying opportunity for gains to the mid-$80's. Put this one on the shopping list.
