One caller Monday night's "Mad Money" show asked host Jim Cramer about OpenDoor Technologies (OPEN) .
"I think you have a good one. I like Zillow (Z) too," replied Cramer.
Let's check out the charts of this digital platform for residential real estate.
In this daily Japanese candlestick chart of OPEN, below, we can see that prices have worked higher the past five months bouncing off of the rising 50-day moving average line. Bearish candle patterns mark the highs of December and January.
Trading volume looks like it increased modestly in January while the On-Balance-Volume (OBV) line looks slightly weaker telling us that sellers of OPEN are being more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been weakening since December and is not far above the zero-line.
In this daily Point and Figure chart of OPEN, below, we can see a potential price target of $43, but also that a trade at $24 could weaken the picture.
Bottom line strategy: Technology is disrupting real estate, but the charts of OPEN are not yet ready to set the world on fire. I want to see more signs of strong accumulation (buying) before recommending a long position.
