MongoDB Is Poised for a Rally

Here's our initial upside price target for MDB which provides a general purpose database platform.

Shares of MongoDB (MDB) have made a bottom formation on the charts and we could see a price rise over the next six weeks or so. MongoDB is an open source NoSQL database management program. NoSQL is used as an alternative to traditional relational databases.

Let's examine the charts and indicators as this technology is above my pay grade.

In this daily bar chart of MDB, below, we can see that prices made a low in May and a higher low in June. Prices are now testing the early June highs to start the simple definition of an uptrend - a series of higher lows and higher highs. MDB is ready to close above the 50-day moving average line.

The daily On-Balance-Volume (OBV) line is leading the way higher with its own new high and telling us that buyers of MDB are being more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is rising and getting closer to a bullish cross above the zero line. 

 

In this weekly Japanese candlestick chart of MDB, below, we can see a number of lower shadows in recent weeks telling us that traders are rejecting the lows. The slope of the 40-week moving average line is bearish.

 

The weekly OBV line shows a low in May and an equal low in June to suggest a trend reversal may be at hand. The MACD oscillator is below the zero line but narrowing towards a potential cover shorts buy signal.

 

 

In this daily Point and Figure chart of MDB, below, we can see a potential upside price target in the $367 area.

 

In this weekly Point and Figure chart of MDB, below, we can see a price objective in the $475 area.

 

Bottom line strategy: Aggressive traders could go long MDB at current levels and on available weakness. Risk below $260. The $367 area is our initial upside price target.

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