Another of this year's 10 "up" stocks from Jim Cramer is RingCentral (RNG) . Let's check out the charts and indicators of this cloud-based business communications' system company.
In this daily bar chart of RNG, below, we can see that prices have been in an uptrend the past 12 months. Stepping back a couple of feet from the chart, the decline from February to March does not look particularly sharp. Prices have since made higher lows and survived tests of the rising 200-day moving average line in September and earlier this month.
The daily On-Balance-Volume (OBV) line shows a decline from early August to early November. A small rise in the OBV line appears to have started or restarted earlier this month. A sign of more aggressive buying is just what is needed for RNG to break out of its sideways trend.
The Moving Average Convergence Divergence (MACD) has also started to turn upwards above the zero line.
In this weekly bar chart of RNG, below, we can see a pretty amazing rally the past three years. Early buyers of RNG look like they are up maybe six-fold from the $50 base level. RNG is trading above the rising 40-week moving average line and tests of this line have turned out to be buying opportunities in the past three years.
The OBV line is pointed up and that too is bullish. The MACD oscillator has been correcting lower since July but is now crossing upwards for a fresh buy signal.
In this daily Point and Figure chart of RNG, below, we can see that a trade at $318.32 will be an upside breakout and opens the way to a price target in the $432 area.
Bottom line strategy: RNG looks like it can trade still higher. Traders could go long RNG at current levels and/or on strength above $319. Risk a close below $270 and use $432 as your price target.
