Shares of PagerDuty (PD) are rallying Wednesday after its third-quarter numbers were better than anticipated. Is this enough to launch a sustained advance?
We looked at PD back on June 3 and wrote that "Traders could initiate a small long position in PD ahead of earnings. Risk to $34. The $59 area is our price target."In this updated daily bar chart of PD, below, we can see that prices managed to rally briefly to $50, but then fizzled. Prices have been in a decline from early September and broke the March and May lows. PD is trading below the declining 50-day and 200-day moving average lines. The daily On-Balance-Volume (OBV) line is showing some weakness from early September. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bearish but narrowing slightly.
In this weekly Japanese candlestick chart of PD, below, we can see that prices are testing a potential support area in the $30-$25 area. The slope of the 40-week moving average line is bearish. The weekly OBV line has been weak the past three months. The MACD oscillator is below the zero-line.
In this daily Point and Figure chart of PD, below, we can see that prices reached and exceeded a downside price target in the $38 area.
In this weekly Point and Figure chart of PD, below, we can see that prices reached and exceeded a $31 price target.