Qudian Inc. (QD) came up during the Lightning Round on Mad Money last night. QD is a leading provider of online small consumer credit products in China, and it got this response from Jim Cramer - "No. This one I don't want you to touch." Pretty straightforward advice, but let's take a quick look at the charts anyway.
In this daily bar chart of QD, below, we can see a bearish situation with prices in a downtrend. QD is trading just below the bearish 50-day moving average line and the below the negative 200-day line. The daily On-Balance-Volume (OBV) line is not showing strength and the Moving Average Convergence Divergence (MACD) oscillator is below the zero line.
In this limited weekly bar chart of QD, below, the technical indicators are bearish despite the limited data.
In this Point and Figure chart of QD, below, we can see a downside price target of $3.
Bottom line strategy: China is weakening. QD is trending lower and Jim Cramer says to stay away. No arguments from me.