In his first "Executive Decision" segment of Mad Money Thursday evening, Jim Cramer spoke with Andre Durand, CEO of Ping Identity Holding Corp. (PING) , the identity management provider helping to keep our work-from-home economy safe from hackers.
Durand explained that Ping provides tools and technology for enterprises to better serve their customers. Knowing who you're dealing with is a universal need, he said, and in today's world, where everything is being done online, that need is greater than ever.
Ping is helping companies move to a new paradigm, Durand said. Users can now authenticate once and have access to everything they need. This allows people to work from anywhere and thus completely redefines the concept of a firewall that keeps the good guys in and the bad guys out.
Let's check and see if the good guys are buying the stock.
In this daily bar chart of PING, below, we can see that we do not yet have a full 12 months of price data. The company went public in September 2019, and there was an initial rally from October into February. Prices were cut in half in the pandemic decline before rebounding into early August. PING has been bouncing off the rising 50-day moving average line and this month traded through a few times.
The simple math behind the On-Balance-Volume (OBV) line shows a rise from the IPO date and that tells us that buyers of PING have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator turned bullish in April when it crossed the zero line to the upside. This oscillator has declined down to the zero line so we need to watch out for a downside cross and possible sell signal.
In this weekly bar chart of PING, below, we don't have much history to work with but there are a few clues that bother us. Last week we can see that prices made a "close below the low of the high week" - this is a quick-turning sell signal.
Prices are above the rising 40-week moving average line but this is a lagging indicator.
The OBV line is pointed upwards and that is a positive, but the MACD oscillator has narrowed and this indicates that the power of the trend has weakened.
In this daily Point and Figure chart of PING, below, we can see an upside price target around $39 or a slightly new high.
Bottom line strategy: The charts of PING are just okay. I would like to see more price activity but aggressive traders could probe the long side of PING risking a close below $29.
