Here's what Jim Cramer had to say about one of the stocks that callers offered up during the Mad Money Lightning Round Thursday evening: Paysafe (PSFE) : "I think you can buy more," he said.
Let's check out this company that seems to be everywhere as a payment platform.
In this daily Japanese candlestick chart of PSFE, below, we can see that prices had an initial run-up into late January and then proceeded to erase those gains with a decline into the middle of May. Prices are testing the underside of the declining 20-day moving average line. The 50-day moving average line is also declining and intersects around $13.75 or so.
The On-Balance-Volume (OBV) has drifted lower from late January but does not appear to have weakened as much as prices have. The 12-day price momentum study has made a lower low in May so we cannot say that the decline has slowed down.
In this daily Point and Figure chart of PSFE, below, we can see a potential $16 price target. A bounce would be a good start.
Bottom line strategy: Unless you really understand this company's business model, I would not be in a rush to purchase the stock. I would like to see the recent low at $10 to be retested in some way. I would like to see lower shadows on the candlestick chart. I would like to see a higher Point and Figure price target. Meanwhile, I just put PSFE on my market minder.
