One caller during Tuesday's Lightning Round segment of "Mad Money" asked host Jim Cramer about Quotient Technology (QUOT) .
"No, no, that one is too risky," replied Cramer.
Let's check out the charts and indicators of this company that offers digital coupons and other promotions.
In this daily bar chart of QUOT, below, we can see that prices "topped out" in March and April in the $17-$18 area and have tumbled lower and lower. The slopes of the 50-day and 200-day moving averages are bearish. The On-Balance-Volume (OBV) line has been in a decline from early May and this happens when sellers of a stock are more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bearish and has been since early May.
In this weekly Japanese candlestick chart of QUOT, below, we can see that prices are back down and testing lows that have not been seen since early 2020. The slope of the 40-week moving average line has turned down. The weekly OBV line and the MACD oscillator are clearly bearish.
In this daily Point and Figure chart of QUOT, below, we can see the long decline as prices have just about reached a downside price target of $6.19.
In this weekly Point and Figure chart of QUOT, below, we can see a potential price target of zero. Prices may not go that low, but it is the direction that I worry about.
Bottom line strategy: The charts of QUOT are bearish. Avoid the long side. This is not the place to invest your hard earned dollars.
