PagerDuty ( PD) , which operates a digital operations management platform, is expected to report their latest fiscal quarter after the close of trading Thursday. Let's check out the charts.
In this daily bar chart of PD, below, we can see a mixed picture with bullish and bearish clues. Prices have been trading sideways the past three months roughly between $33 and $46. The movement of the 50-day moving average line and the 200-day moving average line are not helping as prices have traded above and below these indicators.
The trading volume is not showing us anything conclusive and the On-Balance-Volume (OBV) line shows some weakness since February. A declining OBV line points to weaker prices as traders have been more aggressive sellers.
The trend-following Moving Average Convergence Divergence (MACD) oscillator shows a low in March and a higher low in May for a bullish divergence when compared to prices that made lower lows.
In this weekly Japanese candlestick chart of PD, below, we see a slightly positive set-up. Prices are just above the rising 40-week moving average line.
The weekly OBV line shows a rise from late August and that is a big difference from the daily OBV line. The MACD oscillator has been narrowing towards a bullish crossover and buy signal.
In this daily Point and Figure chart of PD, below, we can see a potential upside price target in the $59 area.
Bottom line strategy: Traders could initiate a small long position in PD ahead of earnings. Risk to $34. The $59 area is our price target.
