During Tuesday's "Lightning Round" segment of Mad Money, one caller asked Jim Cramer about QuantumScape (QS) : "They've got the better battery. I don't want you to bail on this one," said Cramer.
We looked at QS on January 4 and wrote that "Both QS and the broader market are weak Monday -- not a good combination. Potential support areas are $40 and then $20." Let's check the charts again.
In this daily Japanese candlestick chart of QS, below, we can see that $40 has so far acted as support. Prices have firmed a little and are struggling around the underside of the cresting 50-day moving average line.
Trading volume increased on the recovery but the On-Balance-Volume (OBV) line is not roaring back.
The Moving Average Convergence Divergence (MACD) oscillator is just now crossing back above the zero line.
In this daily Point and Figure chart of QS, below, we can see a potential downside price target in the $31 area.
Bottom line strategy: I don't know the fundamentals and I do not have a lot of price history to recommend this stock. Maybe the worst is behind us but the Point and Figure chart suggests we could decline to the $31 area.
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