In his second "Executive Decision" segment on "Mad Money" Wednesday, Jim Cramer sat down with Brandon Ridenour, CEO of ANGI Homeservices Inc. (ANGI) . ANGI is an online home services company and its shares are up sharply this year. Ridenour said the business of home services totals $400 billion a year, but only 10% of that amount is conducted online. He said there was a lot of value created by the combination of Angie's List and Home Advisor last year, which has created a big tailwind going forward. All this sounds bullish, so let's see if the charts agree.
In this daily bar chart of ANGI, below, we can see a nice rally from $11 back in December to the $23-$24 area in September. Prices weakened in October, breaking two nearby support areas at $21 and then $19 and turning the slope of the 50-day moving average line negative. Prices are still above the rising 200-day line. The next chart support lies in the $17-$15 area.
The daily On-Balance-Volume (OBV) line rose nicely from last November to September to confirm the price rally, but the line has weakened in October. The trend-following Moving Average Convergence Divergence (MACD) oscillator moved to a sell in early October, but the indicator just generated a cover-shorts buy signal.
In this limited weekly bar chart of ANGI, below, we can see a mixed picture. Prices are above the rising 40-week moving average line. The weekly OBV line has declined the past three months and suggests there has been some selling into strength. The weekly MACD oscillator crossed to a take-profits sell signal.
In this Point and Figure chart of ANGI, below, we can see a rally and an upside price target of $25.
Bottom line strategy: The online home-services business may have a lot of upside, but the current state of indicators on ANGI suggest only a slight new high in the months ahead.