PagerDuty Inc. (PD) gapped sharply lower Thursday, as fundamental analysts reacted to the company's second-quarter results released Wednesday evening, which featured in-line revenue and guidance and a billing disappointment. The reaction on the charts has been swift. Let's check the charts of this "incident management platform," as Jim Cramer says it's one to watch.
In this daily bar chart of PD, below, we can see that prices traded sideways in June, July and August, but recently broke out to the upside ahead of earnings.
The sharp price gains ahead of disappointing fundamentals appears to have resulted in a sharp and quick move in the opposite direction, as recent buyers quickly dumped losing positions. Prices are retesting the lows of June and July, as well as the top end of the bottoming 200-day moving average line. A sharp close below $24 is likely to precipitate further declines, in my opinion. The On-Balance-Volume (OBV) line shows a steady rise from early April to August before a sharp move down. The Moving Average Convergence Divergence (MACD) oscillator has been bouncing around the zero line in recent weeks which tells us that prices did not display much trend strength before the earnings disappointment.